AB 1289: Real property disclosure requirements.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2018-09-29
The Real Estate Law provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Bureau of Real Estate.
Existing civil law governing agency listings for the transfer of certain property, which includes real property and mobilehomes, prohibits a listing from being placed in a multiple listing service (MLS), as defined, unless authorized or directed by the owner in the listing.
If an open listing is placed in the multiple listing service, existing law requires the total compensation that the owner is to pay to go to the selling agent who procures an enforceable offer from a ready, able, and willing buyer on the terms accepted by the owner. Existing law does not require an open listing to specify compensation to the selling agent, but authorizes the open listing to state that the compensation is to be negotiated between the selling agent and the owner. Existing law authorizes an open listing to contain an agreement by the owner to pay the listing agent compensation in any amount, at any time, and for any services, other than for selling the property or procuring or finding a buyer, as the agreement may specify.
This bill would delete those provisions relating to an open listing and would revise and recast those provisions to make definitions in the Real Estate Law applicable to these provisions.
Existing civil law governing disclosures upon the transfer of residential property requires the transferor of any real property to deliver to the prospective transferee a specified written statement disclosure subject to specified requirements. If any disclosure, or any material amendment of any disclosure, is delivered after the execution of an offer to purchase, existing law requires the transferee to have a specified period of time to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferors agent. Existing law requires these disclosures to be made on a specified form.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would provide that the period of time the prospective buyer has in which to terminate his or her offer commences when the 3 sections of the disclosure form are completed and delivered to the buyer or buyers agent. The bill would also authorize a real estate agent to complete his or her portion of the disclosure by providing all of the information on the agents inspection disclosure, as specified. The bill would increase the length of time that the transferee has to terminate his or her offer if the delivery of a record was made electronically, as specified.
Existing law authorizes a city or county to elect to require a local option real estate disclosure document in addition to the real estate transfer disclosure document.
This bill would update the content of that optional disclosure document based on making the Real Estate Law definitions applicable to these provisions.
Existing law generally requires the disclosure of natural and environmental hazards, right-to-farm, and other disclosures upon the transfer of residential property. Under existing law, if more than one licensed real estate broker is acting as an agent in a transaction, the broker who has obtained the offer made by the transferee is required to deliver the disclosure to the transferee, unless the transferor has given other written instructions for delivery. If any disclosure, or any material amendment of any disclosure, is delivered after the execution of an offer to purchase, existing law requires the transferee to have a specified period of time to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferors agent.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would update the content of the Natural Hazard Disclosure Statement based on those newly defined terms. The bill would increase the length of time that the transferee has to terminate his or her offer if the delivery of a record was made electronically, as specified.
Under existing law, real estate brokers and salespersons owe certain duties to prospective purchasers of real property.
This bill would modify, add to, and delete, some of the definitions applicable to these provisions.
Existing law requires listing agents and selling agents to provide the seller and buyer in a real property transaction with a copy of a disclosure form regarding real estate agency relationships. Existing law further requires these agency relationships to be confirmed to the buyer and seller in a specified form.
This bill revise the content of the disclosure form to include certain information, including seller and buyer responsibilities. The bill would also revise the content of the form required to confirm real estate agent relationships.
Existing law requires the selling agent to provide the disclosure form to the seller as soon as practicable prior to presenting the seller with an offer to purchase and authorizes a selling agent that does not deal face to face with the seller to furnish the disclosure form by certified mail or by the listing agent. Existing law prohibits a selling agent in a real property transaction from acting as an agent for the buyer only when the selling agent is also acting as the listing agent.
This bill would eliminate those provisions.
Existing law prohibits a dual agent from disclosing to the buyer that the seller is willing to sell the property at a price less than the listing price or that the buyer is willing to pay a price greater than the offering price without the express written consent of the seller or buyer, respectively.
This bill would eliminate that prohibition and instead prohibit a dual agent from disclosing to the buyer or seller any confidential information without express permission.
The bill would make the operation of its provisions contingent on the enactment of Assembly Bill 2884. The bill would also specify that neither its provisions nor those of Assembly Bill 2884 are to be construed to affect certain existing duties of real estate brokers, salespersons, and related persons.
The Real Estate Law provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Bureau of Real Estate.
Existing civil law governing agency listings for the transfer of certain property, which includes real property and mobilehomes, prohibits a listing from being placed in a multiple listing service (MLS), as defined, unless authorized or directed by the owner in the listing.
If an open listing is placed in the multiple listing service, existing law requires the total compensation that the owner is to pay to go to the selling agent who procures an enforceable offer from a ready, able, and willing buyer on the terms accepted by the owner. Existing law does not require an open listing to specify compensation to the selling agent, but authorizes the open listing to state that the compensation is to be negotiated between the selling agent and the owner. Existing law authorizes an open listing to contain an agreement by the owner to pay the listing agent compensation in any amount, at any time, and for any services, other than for selling the property or procuring or finding a buyer, as the agreement may specify.
This bill would delete those provisions relating to an open listing and would revise and recast those provisions to make definitions in the Real Estate Law applicable to these provisions.
Existing civil law governing disclosures upon the transfer of residential property requires the transferor of any real property to deliver to the prospective transferee a specified written statement disclosure subject to specified requirements. If any disclosure, or any material amendment of any disclosure, is delivered after the execution of an offer to purchase, existing law requires the transferee to have a specified period of time to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferors agent. Existing law requires these disclosures to be made on a specified form.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would provide that the period of time the prospective buyer has in which to terminate his or her offer commences when the 3 sections of the disclosure form are completed and delivered to the buyer or buyers agent. The bill would also authorize a real estate agent to complete his or her portion of the disclosure by providing all of the information on the agents inspection disclosure, as specified. The bill would increase the length of time that the transferee has to terminate his or her offer if the delivery of a record was made electronically, as specified.
Existing law authorizes a city or county to elect to require a local option real estate disclosure document in addition to the real estate transfer disclosure document.
This bill would update the content of that optional disclosure document based on making the Real Estate Law definitions applicable to these provisions.
Existing law generally requires the disclosure of natural and environmental hazards, right-to-farm, and other disclosures upon the transfer of residential property. Under existing law, if more than one licensed real estate broker is acting as an agent in a transaction, the broker who has obtained the offer made by the transferee is required to deliver the disclosure to the transferee, unless the transferor has given other written instructions for delivery. If any disclosure, or any material amendment of any disclosure, is delivered after the execution of an offer to purchase, existing law requires the transferee to have a specified period of time to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferors agent.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would update the content of the Natural Hazard Disclosure Statement based on those newly defined terms. The bill would increase the length of time that the transferee has to terminate his or her offer if the delivery of a record was made electronically, as specified.
Under existing law, real estate brokers and salespersons owe certain duties to prospective purchasers of real property.
This bill would modify, add to, and delete, some of the definitions applicable to these provisions.
Existing law requires listing agents and selling agents to provide the seller and buyer in a real property transaction with a copy of a disclosure form regarding real estate agency relationships. Existing law further requires these agency relationships to be confirmed to the buyer and seller in a specified form.
This bill revise the content of the disclosure form to include certain information, including seller and buyer responsibilities. The bill would also revise the content of the form required to confirm real estate agent relationships.
Existing law requires the selling agent to provide the disclosure form to the seller as soon as practicable prior to presenting the seller with an offer to purchase and authorizes a selling agent that does not deal face to face with the seller to furnish the disclosure form by certified mail or by the listing agent. Existing law prohibits a selling agent in a real property transaction from acting as an agent for the buyer only when the selling agent is also acting as the listing agent.
This bill would eliminate those provisions.
Existing law prohibits a dual agent from disclosing to the buyer that the seller is willing to sell the property at a price less than the listing price or that the buyer is willing to pay a price greater than the offering price without the express written consent of the seller or buyer, respectively.
This bill would eliminate that prohibition and instead prohibit a dual agent from disclosing to the buyer or seller any confidential information without express permission.
The bill would make the operation of its provisions contingent on the enactment of Assembly Bill 2884. The bill would also specify that neither its provisions nor those of Assembly Bill 2884 are to be construed to affect certain existing duties of real estate brokers, salespersons, and related persons.
The Real Estate Law provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Bureau of Real Estate.
Existing civil law governing agency listings for the transfer of certain property, which includes real property and mobilehomes, prohibits a listing from being placed in a multiple listing service (MLS), as defined, unless authorized or directed by the owner in the listing.
If an open listing is placed in the multiple listing service, existing law requires the total compensation that the owner is to pay to go to the selling agent who procures an enforceable offer from a ready, able, and willing buyer on the terms accepted by the owner. Existing law does not require an open listing to specify compensation to the selling agent, but authorizes the open listing to state that the compensation is to be negotiated between the selling agent and the owner. Existing law authorizes an open listing to contain an agreement by the owner to pay the listing agent compensation in any amount, at any time, and for any services, other than for selling the property or procuring or finding a buyer, as the agreement may specify.
This bill would delete those provisions relating to an open listing and would revise and recast those provisions to make definitions in the Real Estate Law applicable to these provisions. The bill would also define the term agent to mean a person authorized by law to act in that capacity for the type of property involved and who is licensed as a real estate broker.
Existing civil law governing disclosures upon the transfer of residential property requires the transferor of any real property to deliver to the prospective transferee a specified written statement disclosure subject to specified requirements. If any disclosure, or any material amendment of any disclosure, is delivered after the execution of an offer to purchase, existing law requires the transferee to have a specified period of time to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferors agent. Existing law requires these disclosures to be made on a specified form.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would provide that disclosure is complete the period of time the prospective buyer has in which to terminate his or her offer commences when the 3 sections of the disclosure form are completed and delivered. delivered to the buyer or buyers agent. The bill would also authorize a real estate agent to complete his or her portion of the disclosure by providing all of the information on the agents inspection disclosure, as specified. The bill would increase the length of time that the transferee has to terminate his or her offer if the delivery of a record was made electronically, as specified.
Under existing law, neither the transferor nor any listing or selling agent is required to be liable for any error, inaccuracy, or omission of any information delivered pursuant to these disclosure requirements if the error, inaccuracy, or omission was not within the personal knowledge of the transferor or that listing or selling agent, was based on information timely provided by public agencies or by certain licensed persons that is required to be disclosed, and ordinary care was exercised in obtaining and transmitting it.When a licensed person responds to such a request, existing law authorizes an expert to indicate, in writing, an understanding that the information provided will be used in fulfilling the disclosure requirements, which relieves the expert from responsibility for any items of information other than those expressly set forth in the statement.This bill would delete those provisions relating to expert responsibility.Existing law authorizes a city or county to elect to require a local option real estate disclosure document in addition to the real estate transfer disclosure document.
This bill would update the content of that optional disclosure document based on making the Real Estate Law definitions applicable to these provisions.
Under existing law, if more than one licensed real estate broker is acting as an agent in a transaction, the broker who has obtained the offer made by the transferee is required to deliver the disclosure to the transferee, unless the transferor has given other written instructions for delivery.If there is no real estate broker in a transaction, the bill would require the seller to deliver the disclosure to the buyer.Existing law generally requires the disclosure of natural and environmental hazards, right-to-farm, and other disclosures upon the transfer of residential property. Under existing law, if more than one licensed real estate broker is acting as an agent in a transaction, the broker who has obtained the offer made by the transferee is required to deliver the disclosure to the transferee, unless the transferor has given other written instructions for delivery. If any disclosure, or any material amendment of any disclosure, is delivered after the execution of an offer to purchase, existing law requires the transferee to have a specified period of time to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferors agent.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would update the content of the Natural Hazard Disclosure Statement based on those newly defined terms. If there is only one real estate broker in a transaction, the bill would require that real estate broker to deliver the disclosure to the buyer. If there is no real estate broker in a transaction, the bill would require the seller to deliver the disclosure to the buyer. The bill would increase the length of time that the transferee has to terminate his or her offer if the delivery of a record was made electronically, as specified.
Under existing law, real estate brokers and salespersons owe certain duties to prospective purchasers of real property.
This bill would modify, add to, and delete, some of the definitions applicable to these provisions.
Existing law requires listing agents and selling agents to provide the seller and buyer in a real property transaction with a copy of a disclosure form regarding real estate agency relationships. Existing law further requires these agency relationships to be confirmed to the buyer and seller in a specified form.
This bill revise the content of the disclosure form to include certain information, including seller and buyer responsibilities. The bill would also revise the content of the form required to confirm real estate agent relationships.
Existing law requires the selling agent to provide the disclosure form to the seller as soon as practicable prior to presenting the seller with an offer to purchase and authorizes a selling agent that does not deal face to face with the seller to furnish the disclosure form by certified mail or by the listing agent. Existing law prohibits a selling agent in a real property transaction from acting as an agent for the buyer only when the selling agent is also acting as the listing agent.
This bill would eliminate those provisions.
Existing law prohibits a dual agent from disclosing to the buyer that the seller is willing to sell the property at a price less than the listing price or that the buyer is willing to pay a price greater than the offering price without the express written consent of the seller or buyer, respectively.
This bill would eliminate that prohibition and instead prohibit a dual agent from disclosing to the buyer or seller any confidential information without express permission.
The bill would make the operation of its provisions contingent on the enactment of Assembly Bill 2884. The bill would also specify that neither its provisions nor those of Assembly Bill 2884 are to be construed to affect certain existing duties of real estate brokers, salespersons, and related persons.
The Real Estate Law provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Bureau of Real Estate.
Existing civil law governing agency listings for the transfer of certain property, which includes real property and mobilehomes, prohibits a listing from being placed in a multiple listing service (MLS), as defined, unless authorized or directed by the owner in the listing.
If an open listing is placed in the multiple listing service, existing law requires the total compensation that the owner is to pay to go to the selling agent who procures an enforceable offer from a ready, able, and willing buyer on the terms accepted by the owner. Existing law does not require an open listing to specify compensation to the selling agent, but authorizes the open listing to state that the compensation is to be negotiated between the selling agent and the owner. Existing law authorizes an open listing to contain an agreement by the owner to pay the listing agent compensation in any amount, at any time, and for any services, other than for selling the property or procuring or finding a buyer, as the agreement may specify.
This bill would delete those provisions relating to an open listing and would revise and recast those provisions to make definitions in the Real Estate Law applicable to these provisions. The bill would also define the term agent to mean a person acting under agency laws in a property transaction, including a person authorized by law to act in that capacity for the type of property involved and who is licensed as a real estate broker, and under whose license a listing is executed or an offer to purchase is obtained. broker.
Existing civil law governing disclosures upon the transfer of residential property requires the transferor of any real property to deliver to the prospective transferee a specified written statement disclosure subject to specified requirements. If any disclosure, or any material amendment of any disclosure, is delivered after the execution of an offer to purchase, existing law requires the transferee to have a specified period of time to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferors agent. Existing law requires these disclosures to be made on a specified form.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would provide that disclosure is complete when the 3 sections of the disclosure form are completed and delivered. The bill would also authorize a real estate agent to complete his or her portion of the disclosure by providing all of the information on the agents inspection disclosure, as specified. The bill would increase the length of time that the transferee has to terminate his or her offer if the delivery of a record was made electronically, as specified.
Under existing law, neither the transferor nor any listing or selling agent is required to be liable for any error, inaccuracy, or omission of any information delivered pursuant to these disclosure requirements if the error, inaccuracy, or omission was not within the personal knowledge of the transferor or that listing or selling agent, was based on information timely provided by public agencies or by certain licensed persons that is required to be disclosed, and ordinary care was exercised in obtaining and transmitting it.
When a licensed person responds to such a request, existing law authorizes an expert to indicate, in writing, an understanding that the information provided will be used in fulfilling the disclosure requirements, which relieves the expert from responsibility for any items of information other than those expressly set forth in the statement.
This bill would delete those provisions relating to expert responsibility.
Existing law authorizes a city or county to elect to require a local option real estate disclosure document in addition to the real estate transfer disclosure document.
This bill would update the content of that optional disclosure document based on making the Real Estate Law definitions applicable to these provisions.
Under existing law, if more than one licensed real estate broker is acting as an agent in a transaction, the broker who has obtained the offer made by the transferee is required to deliver the disclosure to the transferee, unless the transferor has given other written instructions for delivery.
If there is no real estate broker in a transaction, the bill would require the seller to deliver the disclosure to the buyer.
Existing law generally requires the disclosure of natural and environmental hazards, right-to-farm, and other disclosures upon the transfer of residential property. Under existing law, if more than one licensed real estate broker is acting as an agent in a transaction, the broker who has obtained the offer made by the transferee is required to deliver the disclosure to the transferee, unless the transferor has given other written instructions for delivery. If any disclosure, or any material amendment of any disclosure, is delivered after the execution of an offer to purchase, existing law requires the transferee to have a specified period of time to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferors agent.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would update the content of the Natural Hazard Disclosure Statement based on those newly defined terms. If there is only one real estate broker in a transaction, the bill would require that real estate broker to deliver the disclosure to the buyer. If there is no real estate broker in a transaction, the bill would require the seller to deliver the disclosure to the buyer. The bill would increase the length of time that the transferee has to terminate his or her offer if the delivery of a record was made electronically, as specified.
Under existing law, real estate brokers and salespersons owe certain duties to prospective purchasers of real property.
This bill would modify, add to, and delete, some of the definitions applicable to these provisions.
Existing law requires listing agents and selling agents to provide the seller and buyer in a real property transaction with a copy of a disclosure form regarding real estate agency relationships. Existing law further requires these agency relationships to be confirmed to the buyer and seller in a specified form.
This bill revise the content of the disclosure form to include certain information, including seller and buyer responsibilities. The bill would also revise the content of the form required to confirm real estate agent relationships.
Existing law requires the selling agent to provide the disclosure form to the seller as soon as practicable prior to presenting the seller with an offer to purchase and authorizes a selling agent that does not deal face to face with the seller to furnish the disclosure form by certified mail or by the listing agent. Existing law prohibits a selling agent in a real property transaction from acting as an agent for the buyer only when the selling agent is also acting as the listing agent.
This bill would eliminate those provisions.
Existing law prohibits a dual agent from disclosing to the buyer that the seller is willing to sell the property at a price less than the listing price or that the buyer is willing to pay a price greater than the offering price without the express written consent of the seller or buyer, respectively.
This bill would eliminate that prohibition and instead prohibit a dual agent from disclosing to the buyer or seller any confidential information without express permission.
The bill would make the operation of its provisions contingent on the enactment of Assembly Bill 749. 2884.
The Real Estate Law provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Bureau of Real Estate.
Existing civil law governing agency listings for the transfer of certain property, which includes real property and mobilehomes, prohibits a listing from being placed in a multiple listing service (MLS), as defined, unless authorized or directed by the owner in the listing.
If an open listing is placed in the multiple listing service, existing law requires the total compensation that the owner is to pay to go to the selling agent who procures an enforceable offer from a ready, able, and willing buyer on the terms accepted by the owner. Existing law does not require an open listing to specify compensation to the selling agent, but authorizes the open listing to state that the compensation is to be negotiated between the selling agent and the owner. Existing law authorizes an open listing to contain an agreement by the owner to pay the listing agent compensation in any amount, at any time, and for any services, other than for selling the property or procuring or finding a buyer, as the agreement may specify.
This bill would delete those provisions relating to an open listing and would revise and recast those provisions to make definitions in the Real Estate Law applicable to these provisions. The bill would also define the term agent to mean a person acting under agency laws in a property transaction, including a person who is licensed as a real estate broker, and under whose license a listing is executed or an offer to purchase is obtained.
Existing civil law governing disclosures upon the transfer of residential property requires the transferor of any real property to deliver to the prospective transferee a specified written statement disclosure subject to specified requirements. If any disclosure, or any material amendment of any disclosure, is delivered after the execution of an offer to purchase, existing law requires the transferee to have a specified period of time to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferors agent. Existing law requires these disclosures to be made on a specified form.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would provide that disclosure is complete when the 3 sections of the disclosure form are completed and delivered. The bill would also authorize a real estate agent to complete his or her portion of the disclosure by providing all of the information on the agents inspection disclosure, as specified. The bill would increase the length of time that the transferee has to terminate his or her offer if the delivery of a record was made electronically, as specified.
Under existing law, neither the transferor nor any listing or selling agent is required to be liable for any error, inaccuracy, or omission of any information delivered pursuant to these disclosure requirements if the error, inaccuracy, or omission was not within the personal knowledge of the transferor or that listing or selling agent, was based on information timely provided by public agencies or by certain licensed persons that is required to be disclosed, and ordinary care was exercised in obtaining and transmitting it.
When a licensed person responds to such a request, existing law authorizes an expert to indicate, in writing, an understanding that the information provided will be used in fulfilling the disclosure requirements, which relieves the expert from responsibility for any items of information other than those expressly set forth in the statement.
This bill would delete those provisions relating to expert responsibility.
Existing law authorizes a city or county to elect to require a local option real estate disclosure document in addition to the real estate transfer disclosure document.
This bill would update the content of that optional disclosure document based on making the Real Estate Law definitions applicable to these provisions.
Under existing law, if more than one licensed real estate broker is acting as an agent in a transaction, the broker who has obtained the offer made by the transferee is required to deliver the disclosure to the transferee, unless the transferor has given other written instructions for delivery.
If there is no real estate broker in a transaction, the bill would require the seller to deliver the disclosure to the buyer.
Existing law generally requires the disclosure of natural and environmental hazards, right-to-farm, and other disclosures upon the transfer of residential property. Under existing law, if more than one licensed real estate broker is acting as an agent in a transaction, the broker who has obtained the offer made by the transferee is required to deliver the disclosure to the transferee, unless the transferor has given other written instructions for delivery. If any disclosure, or any material amendment of any disclosure, is delivered after the execution of an offer to purchase, existing law requires the transferee to have a specified period of time to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferors agent.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would update the content of the Natural Hazard Disclosure Statement based on those newly defined terms. If there is only one real estate broker in a transaction, the bill would require that real estate broker to deliver the disclosure to the buyer. If there is no real estate broker in a transaction, the bill would require the seller to deliver the disclosure to the buyer. The bill would increase the length of time that the transferee has to terminate his or her offer if the delivery of a record was made electronically, as specified.
Under existing law, real estate brokers and salespersons owe certain duties to prospective purchasers of real property.
This bill would modify, add to, and delete, some of the definitions applicable to these provisions.
Existing law requires listing agents and selling agents to provide the seller and buyer in a real property transaction with a copy of a disclosure form, form regarding real estate agency relationships. Existing law further requires these agency relationships to be confirmed to the buyer and seller in a specified form.
This bill revise the content of the disclosure form to include certain information, including seller and buyer responsibilities. The bill would also update revise the content of the form required to confirm real estate agent relationships.
Existing law requires the selling agent to provide the disclosure form to the seller as soon as practicable prior to presenting the seller with an offer to purchase and authorizes a selling agent that does not deal face to face with the seller to furnish the disclosure form by certified mail or by the listing agent. Existing law prohibits a selling agent in a real property transaction from acting as an agent for the buyer only when the selling agent is also acting as the listing agent.
This bill would eliminate those provisions.
Existing law prohibits a dual agent from disclosing to the buyer that the seller is willing to sell the property at a price less than the listing price or that the buyer is willing to pay a price greater than the offering price without the express written consent of the seller or buyer, respectively.
This bill would eliminate that prohibition and instead prohibit a dual agent from disclosing to the buyer or seller any confidential information without express permission.
The bill would make the operation of its provisions contingent on enactment of Assembly Bill 749.
The Real Estate Law provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Bureau of Real Estate.
Existing civil law governing agency listings for the transfer of certain property, which includes real property and mobilehomes, prohibits a listing from being placed in a multiple listing service (MLS), as defined, unless authorized or directed by the owner in the listing.
If an open listing is placed in the multiple listing service, existing law requires the total compensation that the owner is to pay to go to the selling agent who procures an enforceable offer from a ready, able, and willing buyer on the terms accepted by the owner. Existing law does not require an open listing to specify compensation to the selling agent, but authorizes the open listing to state that the compensation is to be negotiated between the selling agent and the owner. Existing law authorizes an open listing to contain an agreement by the owner to pay the listing agent compensation in any amount, at any time, and for any services, other than for selling the property or procuring or finding a buyer, as the agreement may specify.
This bill would delete those provisions relating to an open listing and would revise and recast those provisions to make definitions in the Real Estate Law applicable to these provisions.
Existing civil law governing disclosures upon the transfer of residential property requires the transferor of any real property to deliver to the prospective transferee a specified written statement disclosure subject to specified requirements. If any disclosure, or any material amendment of any disclosure, is delivered after the execution of an offer to purchase, existing law requires the transferee to have a specified period of time to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferors agent. Existing law requires these disclosures to be made on a specified form.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would provide that disclosure is complete when the 3 sections of the disclosure form are completed and delivered. The bill would also authorize a real estate licensee agent to complete his or her portion of the disclosure by providing all of the information on the licensees agents inspection disclosure, as specified.
Under existing law, neither the transferor nor any listing or selling agent is required to be liable for any error, inaccuracy, or omission of any information delivered pursuant to these disclosure requirements if the error, inaccuracy, or omission was not within the personal knowledge of the transferor or that listing or selling agent, was based on information timely provided by public agencies or by certain licensed persons that is required to be disclosed, and ordinary care was exercised in obtaining and transmitting it.
When a licensed person responds to such a request, existing law authorizes an expert to indicate, in writing, an understanding that the information provided will be used in fulfilling the disclosure requirements, which relieves the expert from responsibility for any items of information other than those expressly set forth in the statement.
This bill would delete those provisions relating to expert responsibility.
Existing law authorizes a city or county to elect to require a local option real estate disclosure document in addition to the real estate transfer disclosure document.
This bill would update the content of that optional disclosure document based on making the Real Estate Law definitions applicable to these provisions.
Under existing law, if more than one licensed real estate broker is acting as an agent in a transaction, the broker who has obtained the offer made by the transferee is required to deliver the disclosure to the transferee, unless the transferor has given other written instructions for delivery.
If there is only one real estate licensee in a transaction, the bill would require that real estate licensee to deliver the disclosure to the buyer. If there is no real estate licensee broker in a transaction, the bill would require the seller to deliver the disclosure to the buyer.
Existing law generally requires the disclosure of natural and environmental hazards, right-to-farm, and other disclosures upon the transfer of residential property. Under existing law, if more than one licensed real estate broker is acting as an agent in a transaction, the broker who has obtained the offer made by the transferee is required to deliver the disclosure to the transferee, unless the transferor has given other written instructions for delivery.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would update the content of the Natural Hazard Disclosure Statement based on those newly defined terms. If there is only one real estate broker in a transaction, the bill would require that real estate broker to deliver the disclosure to the buyer. If there is no real estate broker in a transaction, the bill would require the seller to deliver the disclosure to the buyer.
Under existing law, real estate brokers and salespersons owe certain duties to prospective purchasers of real property.
This bill would make modify, add to, and delete, some of the definitions in the Real Estate Law applicable to these provisions.
Existing law requires listing agents and selling agents to provide the seller and buyer in a real property transaction with a copy of a disclosure form, which includes specified statutory provisions printed on the back, regarding real estate agency relationships. Existing law further requires these agency relationships to be confirmed to the buyer and seller in a specified form.
This bill would eliminate the requirement to include those statutory provisions, revise the content of that form to include at a minimum certain information, including consumer responsibilities, and update the terms used in that form based on the application of the Real Estate Law terminology to these provisions. The bill would also update the content of the form required to confirm real estate licensee agent relationships.
Existing law requires the selling agent to provide the disclosure form to the seller as soon as practicable prior to presenting the seller with an offer to purchase and authorizes a selling agent that does not deal face to face with the seller to furnish the disclosure form by certified mail or by the listing agent. Existing law prohibits a selling agent in a real property transaction from acting as an agent for the buyer only when the selling agent is also acting as the listing agent.
This bill would eliminate those provisions.
Existing law prohibits a dual agent from disclosing to the buyer that the seller is willing to sell the property at a price less than the listing price or that the buyer is willing to pay a price greater than the offering price without the express written consent of the seller or buyer, respectively.
This bill would eliminate that prohibition and instead prohibit a dual agent from disclosing to the buyer or seller any confidential information without express permission.
The bill would make the operation of its provisions contingent on enactment of Assembly Bill 749.
The Real Estate Law provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Bureau of Real Estate.
Existing civil law governing agency listings for the transfer of certain property, which includes real property and mobilehomes, prohibits a listing from being placed in a multiple listing service (MLS), as defined, unless authorized or directed by the owner in the listing.
If an open listing is placed in the multiple listing service, existing law requires the total compensation that the owner is to pay to go to the selling agent who procures an enforceable offer from a ready, able, and willing buyer on the terms accepted by the owner. Existing law does not require an open listing to specify compensation to the selling agent, but authorizes the open listing to state that the compensation is to be negotiated between the selling agent and the owner. Existing law authorizes an open listing to contain an agreement by the owner to pay the listing agent compensation in any amount, at any time, and for any services, other than for selling the property or procuring or finding a buyer, as the agreement may specify.
This bill would delete those provisions relating to an open listing and would revise and recast those provisions to make definitions in the Real Estate Law applicable to these provisions.
Existing civil law governing disclosures upon the transfer of residential property requires the transferor of any real property to deliver to the prospective transferee a specified written statement disclosure subject to specified requirements. If any disclosure, or any material amendment of any disclosure, is delivered after the execution of an offer to purchase, existing law requires the transferee to have a specified period of time to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferors agent. Existing law requires these disclosures to be made on a specified form.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would provide that disclosure is complete when the 3 sections of the disclosure form are completed and delivered. The bill would also authorize a real estate licensee to complete his or her portion of the disclosure by providing all of the information on the licensees inspection disclosure, as specified.
Under existing law, neither the transferor nor any listing or selling agent is required to be liable for any error, inaccuracy, or omission of any information delivered pursuant to these disclosure requirements if the error, inaccuracy, or omission was not within the personal knowledge of the transferor or that listing or selling agent, was based on information timely provided by public agencies or by certain licensed persons that is required to be disclosed, and ordinary care was exercised in obtaining and transmitting it.
When a licensed person responds to such a request, existing law authorizes an expert to indicate, in writing, an understanding that the information provided will be used in fulfilling the disclosure requirements, which relieves the expert from responsibility for any items of information other than those expressly set forth in the statement.
This bill would delete those provisions relating to expert responsibility.
Existing law authorizes a city or county to elect to require a local option real estate disclosure document in addition to the real estate transfer disclosure document.
This bill would update the content of that optional disclosure document based on making the Real Estate Law definitions applicable to these provisions.
Under existing law, if more than one licensed real estate broker is acting as an agent in a transaction, the broker who has obtained the offer made by the transferee is required to deliver the disclosure to the transferee, unless the transferor has given other written instructions for delivery.
If there is only one real estate licensee in a transaction, the bill would require that real estate licensee to deliver the disclosure to the buyer. If there is no real estate licensee in a transaction, the bill would require the seller to deliver the disclosure to the buyer.
Existing law generally requires the disclosure of natural and environmental hazards, right-to-farm, and other disclosures upon the transfer of residential property.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would update the content of the Natural Hazard Disclosure Statement based on those newly defined terms.
Under existing law, real estate brokers and salespersons owe certain duties to prospective purchasers of real property.
This bill would make the definitions in the Real Estate Law applicable to these provisions.
Existing law requires listing agents and selling agents to provide the seller and buyer in a real property transaction with a copy of a disclosure form, which includes specified statutory provisions printed on the back, regarding real estate agency relationships. Existing law further requires these agency relationships to be confirmed to the buyer and seller in a specified form.
This bill would eliminate the requirement to include those statutory provisions, revise the content of that form to include at a minimum certain information, including consumer responsibilities, and update the terms used in that form based on the application of the Real Estate Law terminology to these provisions. The bill would also update the content of the form required to confirm real estate licensee relationships.
The bill would make the operation of its provisions contingent on enactment of an unspecified measure introduced in the 201718 Regular Session. Assembly Bill 749.
The Real Estate Law provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Bureau of Real Estate.
Existing civil law governing agency listings for the transfer of certain property, which includes real property and mobilehomes, prohibits a listing from being placed in a multiple listing service (MLS), as defined, unless authorized or directed by the owner in the listing.
If an open listing is placed in the multiple listing service, existing law requires the total compensation that the owner is to pay to go to the selling agent who procures an enforceable offer from a ready, able, and willing buyer on the terms accepted by the owner. Existing law does not require an open listing to specify compensation to the selling agent, but authorizes the open listing to state that the compensation is to be negotiated between the selling agent and the owner. Existing law authorizes an open listing to contain an agreement by the owner to pay the listing agent compensation in any amount, at any time, and for any services, other than for selling the property or procuring or finding a buyer, as the agreement may specify.
This bill would delete those provisions relating to an open listing and would revise and recast those provisions to make definitions in the Real Estate Law applicable to these provisions.
Existing civil law governing disclosures upon the transfer of residential property requires the transferor of any real property to deliver to the prospective transferee a specified written statement disclosure subject to specified requirements. If any disclosure, or any material amendment of any disclosure, is delivered after the execution of an offer to purchase, existing law requires the transferee to have a specified period of time to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferors agent. Existing law requires these disclosures to be made on a specified form.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would provide that disclosure is complete when the 3 sections of the disclosure form are completed and delivered. The bill would also authorize a real estate licensee to complete his or her portion of the disclosure by providing all of the information on the licensees inspection disclosure, as specified.
Under existing law, neither the transferor nor any listing or selling agent is required to be liable for any error, inaccuracy, or omission of any information delivered pursuant to these disclosure requirements if the error, inaccuracy, or omission was not within the personal knowledge of the transferor or that listing or selling agent, was based on information timely provided by public agencies or by certain licensed persons that is required to be disclosed, and ordinary care was exercised in obtaining and transmitting it.
When a licensed person responds to such a request, existing law authorizes an expert to indicate, in writing, an understanding that the information provided will be used in fulfilling the disclosure requirements, which relieves the expert from responsibility for any items of information other than those expressly set forth in the statement.
This bill would delete those provisions relating to expert responsibility.
Existing law authorizes a city or county to elect to require a local option real estate disclosure document in addition to the real estate transfer disclosure document.
This bill would update the content of that optional disclosure document based on making the Real Estate Law definitions applicable to these provisions.
Under existing law, if more than one licensed real estate broker is acting as an agent in a transaction, the broker who has obtained the offer made by the transferee is required to deliver the disclosure to the transferee, unless the transferor has given other written instructions for delivery.
If there is only one real estate licensee in a transaction, the bill would require that real estate licensee to deliver the disclosure to the buyer. If there is no real estate licensee in a transaction, the bill would require the seller to deliver the disclosure to the buyer.
Existing law generally requires the disclosure of natural and environmental hazards, right-to-farm, and other disclosures upon the transfer of residential property.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would update the content of the Natural Hazard Disclosure Statement based on those newly defined terms.
Under existing law, real estate brokers and salespersons owe certain duties to prospective purchasers of real property.
This bill would make the definitions in the Real Estate Law applicable to these provisions.
Existing law requires listing agents and selling agents to provide the seller and buyer in a real property transaction with a copy of a disclosure form, which includes specified statutory provisions printed on the back, regarding real estate agency relationships. Existing law further requires these agency relationships to be confirmed to the buyer and seller in a specified form.
This bill would eliminate the requirement to include those statutory provisions, revise the content of that form to include at a minimum certain information, including consumer responsibilities, and update the terms used in that form based on the application of the Real Estate Law terminology to these provisions. The bill would also update the content of the form required to confirm real estate licensee relationships.
The bill would make the operation of its provisions contingent on enactment of an unspecified measure introduced in the 201718 Regular Session.
(a)For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code apply.
(b)An agent is one authorized by law to act in that capacity for that type of property and is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, or is a licensee, as defined in Section 18006 of the Health and Safety Code.
SEC. 2.Section 1087 of the Civil Code is amended to read:1087.A multiple listing service (MLS) is a facility of cooperation of agents and appraisers, operating through an intermediary that does not itself act as an agent or appraiser, through which agents establish express or implied contracts for compensation between agents that are MLS participants in accordance with its MLS rules with respect to listed properties in a listing agreement, or that may be used by agents and appraisers, pursuant to the rules of the service, to prepare market evaluations and appraisals of real property.
SEC. 3.Section 1088 of the Civil Code is amended to read:1088.A listing may not be placed in a multiple listing service unless authorized or directed by the seller in the listing.
If an agent or appraiser places a listing or other information in the multiple listing service, that agent or appraiser shall be responsible for the truth of all representations and statements made by the agent or appraiser of which that agent or appraiser had knowledge or reasonably should have had knowledge to anyone injured by their falseness or inaccuracy.
SEC. 4.Section 1089 of the Civil Code is repealed.SEC. 5.Section 1089 is added to the Civil Code, to read:1089.The provisions of subdivision (d) of Section 1102.1 shall apply to this article.
SEC. 6.Section 1090 of the Civil Code is repealed.SEC. 7.Section 1102 of the Civil Code is amended to read:1102.(a)Except as provided in Section 1102.2, this article applies to any transfer by sale, exchange, real property sales contract as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements of single-family residential property.
(b)For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(c)Any waiver of the requirements of this article is void as against public policy.
SEC. 8.Section 1102.1 of the Civil Code is amended to read:1102.1.(a)In enacting Chapter 817 of the Statutes of 1994, it was the intent of the Legislature to clarify and facilitate the use of the real estate disclosure statement, as specified in Section 1102.6. The Legislature intended the statement to be used by transferors making disclosures required under this article and by agents making disclosures required by Section 2079 on the agents portion of the real estate disclosure statement, in transfers subject to this article. In transfers not subject to this article, agents may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their agents, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a, and that nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079.
It is also the intent of the Legislature that the delivery of a real estate transfer disclosure statement may not be waived in an as is sale, as held in Loughrin v. Superior Court (1993) 15 Cal. App. 4th 1188.
(b)In enacting Chapter 677 of the Statutes of 1996, it was the intent of the Legislature to clarify and facilitate the use of the manufactured home and mobilehome transfer disclosure statement applicable to the resale of a manufactured home or mobilehome pursuant to subdivision (b) of Section 1102. The Legislature intended the statements to be used by transferors making disclosures required under this article and by agents making disclosures required by Section 2079 on the agents portion of the disclosure statement and as required by Section 18046 of the Health and Safety Code on the dealers portion of the manufactured home and mobilehome transfer disclosure statement, in transfers subject to this article. In transfers not subject to this article, agents may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their agents, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a or to affect the existing obligations of the parties to a manufactured home or mobilehome purchase contract, and nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079 or the duty of a manufactured home or mobilehome dealer or salesperson pursuant to Section 18046 of the Health and Safety Code.
It is also the intent of the Legislature that the delivery of a mobilehome transfer disclosure statement may not be waived in an as is sale.
(c)It is the intent of the Legislature that manufactured home and mobilehome dealers and salespersons and real estate brokers and salespersons use the form provided pursuant to Section 1102.6d. It is also the intent of the Legislature for sellers of manufactured homes or mobilehomes who are neither manufactured home dealers or salespersons nor real estate brokers or salespersons to use the Manufactured Home/Mobilehome Transfer Disclosure Statement contained in Section 1102.6d.
(d)Nothing in Assembly Bill 1289 of the 201718 Regular Session or Assembly Bill 2884 of the 201718 Regular Session shall be construed to affect any of the following:
(1)A real estate brokers duties under existing statutory or common law as an agent of a person who retains that broker to perform acts for which a license is required under this division.
(2)Any fiduciary duties owed by a real estate broker to a person who retains that broker to perform acts for which a license is required under this division.
(3)Any duty of disclosure or any other duties or obligations of a real estate broker, which arise under this division or other existing, applicable California law, including common law.
(4)Any duties or obligations of a salesperson or a broker associate, which arise under this division or existing, applicable California law, including common law, and duties and obligations to the salespersons or broker associates responsible broker.
(5)A responsible brokers duty of supervision and oversight for the acts of retained salespersons or broker associates, which arise under this division or other existing, applicable California law, including common law.
For purposes of this subdivision, references to existing statutory law and existing, applicable California law refer to the law as it read immediately prior to enactment of Assembly Bill 1289 of the 201718 Regular Session and Assembly Bill 2884 of the 201718 Regular Session.
SEC. 9.Section 1102.2 of the Civil Code is amended to read:1102.2.This article does not apply to the following:
(a)Sales or transfers that are required to be preceded by the furnishing to a prospective buyer of a copy of a public report pursuant to Section 11018.1 of the Business and Professions Code and transfers that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code.
(b)Sales or transfers pursuant to court order, including, but not limited to, sales ordered by a probate court in the administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, transfers by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.
(c)Sales or transfers to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure, sales to the legal owner or lienholder of a manufactured home or mobilehome by a registered owner or successor in interest who is in default, or sales by reason of any foreclosure of a security interest in a manufactured home or mobilehome.
(d)Sales or transfers by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and he or she is a former owner of the property or was an occupant in possession of the property within the preceding year.
(e)Sales or transfers from one coowner to one or more other coowners.
(f)Sales or transfers made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors.
(g)Sales or transfers between spouses resulting from a judgment of dissolution of marriage or of legal separation or from a property settlement agreement incidental to that judgment.
(h)Sales or transfers by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(i)Sales or transfers under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(j)Sales or transfers or exchanges to or from any governmental entity.
(k)Sales or transfers of any portion of a property not constituting single-family residential property.
(l)Notwithstanding the definition of sale in Section 10018.5 of the Business and Professions Code and Section 2079.13, the terms sale and transfer, as they are used in this section, shall have their commonly understood meanings. The changes made to this section by Assembly Bill 1289 of the 201718 Legislative Session shall not be interpreted to change the application of the law as it read prior to January 1, 2019.
SEC. 10.Section 1102.3 of the Civil Code is amended to read:1102.3.The seller of any single-family real property subject to this article shall deliver to the prospective buyer the completed written statement required by this article, as follows:
(a)In the case of a sale, as soon as practicable before transfer of title.
(b)In the case of sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(c)With respect to any sale subject to subdivision (a) or (b), the seller shall indicate compliance with this article on the real property sales contract, the lease, or any addendum attached thereto or on a separate document.
If any disclosure, or any material amendment of any disclosure, required to be made by this article, is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person, five days after delivery by deposit in the mail, or five days after delivery of an electronic record in transactions where the parties have agreed to conduct the transaction by electronic means, pursuant to provisions of the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3), to terminate his or her offer by delivery of a written notice of termination to the seller or the sellers agent. The period of time the prospective buyer has in which to terminate his or her offer commences when Sections I, II, and III in the form described in Section 1102.6 are completed and delivered to the buyer or buyers agent. A real estate agent may complete his or her portion of the required disclosure by providing all of the information on the agents inspection disclosure set forth in Section 1102.6.
SEC. 11.Section 1102.4 of the Civil Code is amended to read:1102.4.(a)Neither the seller nor any sellers agent or buyers agent shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or that listing or buyers agent, was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting it.
(b)The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller or any listing or buyers agent of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, structural pest control operator, contractor, a C-39 roofing contractor conducting a roof inspection pursuant to subdivision (d) of Section 7197 of the Business and Professions Code, or other expert, dealing with matters within the scope of the professionals license or expertise, shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral. In responding to such a request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1102.6 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where such a statement is furnished, the expert shall not be responsible for any items of information or parts thereof, other than those expressly set forth in the statement.
SEC. 12.Section 1102.5 of the Civil Code is amended to read:1102.5.If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any act, occurrence, or agreement subsequent to the delivery of the required disclosures, any inaccuracy resulting therefrom does not constitute a violation of this article. If at the time the disclosures are required to be made, an item of information required to be disclosed is unknown or not available to the seller, and the seller or his or her agent has made a reasonable effort to ascertain it, the seller may use an approximation of the information, provided the approximation is clearly identified as such, is reasonable, is based on the best information reasonably available to the seller or his or her agent, and is not used for the purpose of circumventing or evading this article.
SEC. 13.Section 1102.6a of the Civil Code is amended to read:1102.6a.(a)On and after July 1, 1990, any city or county may elect to require disclosures on the form set forth in subdivision (b) in addition to those disclosures required by Section 1102.6. However, this section does not affect or limit the authority of a city or county to require disclosures on a different disclosure form in connection with transactions subject to this article pursuant to an ordinance adopted prior to July 1, 1990. An ordinance like this adopted prior to July 1, 1990, may be amended thereafter to revise the disclosure requirements of the ordinance, in the discretion of the city council or county board of supervisors.
(b)Disclosures required pursuant to this section pertaining to the property proposed to be sold, shall be set forth in, and shall be made on a copy of, the following disclosure form:
PRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE INSERTED(c)This section does not preclude the use of addenda to the form specified in subdivision (b) to facilitate the required disclosures. This section does not preclude a city or county from using the disclosure form specified in subdivision (b) for a purpose other than that specified in this section.
(d)(1)On and after January 1, 2005, if a city or county adopts a different or additional disclosure form pursuant to this section regarding the proximity or effects of an airport, the statement in that form shall contain, at a minimum, the information in the statement Notice of Airport in Vicinity found in Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255.
(2)On and after January 1, 2006, if a city or county does not adopt a different or additional disclosure form pursuant to this section, then the provision of an airport influence area disclosure pursuant to Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255, or if there is not a current airport influence map, a written disclosure of an airport within two statute miles, shall be deemed to satisfy any city or county requirements for the disclosure of airports in connection with sales of real property.
SEC. 14.Section 1102.6b of the Civil Code is amended to read:1102.6b.(a)This section applies to all sales of real property for which all of the following apply:
(1)The sale is subject to this article.
(2)The property being sold is subject to a continuing lien securing the levy of special taxes pursuant to the Mello-Roos Community Facilities Act (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code), to a fixed lien assessment collected in installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or to a contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code.
(3)A notice is not required pursuant to Section 53341.5 of the Government Code.
(b)In addition to any other disclosure required pursuant to this article, the seller of any real property subject to this section shall make a good faith effort to obtain a disclosure notice concerning the special tax as provided for in Section 53340.2 of the Government Code, or a disclosure notice concerning an assessment installment as provided in Section 53754 of the Government Code, from each local agency that levies a special tax pursuant to the Mello-Roos Community Facilities Act, or that collects assessment installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or a disclosure notice concerning the contractual assessment as provided in Section 5898.24 of the Streets and Highways Code, on the property being sold, and shall deliver that notice or those notices to the prospective buyer, as long as the notices are made available by the local agency.
(c)(1)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) by delivering a disclosure notice that is substantially equivalent and obtained from another source until December 31, 2004.
(2)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the assessments collected under the contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code by delivering a disclosure notice that is substantially equivalent and obtained from another source.
(3)For the purposes of this section, a substantially equivalent disclosure notice includes, but is not limited to, a copy of the most recent years property tax bill or an itemization of current assessment amounts applicable to the property.
(d)(1)Notwithstanding subdivision (c), the seller of real property subject to this section may satisfy the disclosure notice requirements of this section by delivering a disclosure notice obtained from a nongovernmental source that satisfies the requirements of paragraph (2).
(2)A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe a special tax pursuant to the Mello-Roos Community Facilities Act levied against the property or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy a special tax pursuant to the Mello-Roos Community Facilities Act against the property, and shall include the name of the Mello-Roos entity levying taxes against the property, the annual tax due for the Mello-Roos entity for the current tax year, the maximum tax that may be levied against the property in any year, the percentage by which the maximum tax for the Mello-Roos entity may increase per year, and the date until the tax may be levied against the property for the Mello-Roos entity and a contact telephone number, if available, for further information about the Mello-Roos entity. A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe special assessments and bonds pursuant to the Improvement Bond Act of 1915 levied against the property, or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy special assessments and bonds pursuant to the Improvement Bond Act of 1915 against the property, and shall include the name of the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915, the current annual tax on the property for the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915 and a contact telephone number, if available, for further information about the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915.
(3)This section does not change the ability to make disclosures pursuant to Section 1102.4 of the Civil Code.
(e)If a disclosure received pursuant to subdivision (b), (c), or (d) has been delivered to the buyer, a seller or his or her agent is not required to provide additional information concerning, and information in the disclosure shall be deemed to satisfy the responsibility of the seller or his or her agent to inform the buyer regarding the special tax or assessment installments and the district. Notwithstanding subdivision (b), (c), or (d), nothing in this section imposes a duty to discover a special tax or assessment installments or the existence of any levying district not actually known to the agents.
SEC. 15.Section 1102.6c of the Civil Code is amended to read:1102.6c.(a)In addition to any other disclosure required pursuant to this article, it shall be the sole responsibility of the seller of any real property subject to this article, or his or her agent, to deliver to the prospective buyer a disclosure notice that includes both of the following:
(1)A notice, in at least 12-point type or a contrasting color, as follows:
California property tax law requires the Assessor to revalue real property at the time the ownership of the property changes. Because of this law, you may receive one or two supplemental tax bills, depending on when your loan closes.
The supplemental tax bills are not mailed to your lender. If you have arranged for your property tax payments to be paid through an impound account, the supplemental tax bills will not be paid by your lender. It is your responsibility to pay these supplemental bills directly to the tax collector. If you have any question concerning this matter, please call your local tax collectors office.
(2)A title, in at least 14-point type or a contrasting color, that reads as follows: Notice of Your Supplemental Property Tax Bill.
(b)The disclosure notice requirements of this section may be satisfied by delivering a disclosure notice pursuant to Section 1102.6b that satisfies the requirements of subdivision (a).
SEC. 16.Section 1102.9 of the Civil Code is amended to read:1102.9.Any disclosure made pursuant to this article may be amended in writing by the seller or his or her agent, but the amendment shall be subject to Section 1102.3 or 1102.3a.
SEC. 17.Section 1102.14 of the Civil Code is repealed.SEC. 18.Section 1102.155 of the Civil Code is amended to read:1102.155.(a)(1)The seller of single-family residential real property subject to this article shall disclose, in writing, that Section 1101.4 requires that California single-family residences be equipped with water-conserving plumbing fixtures on or after January 1, 2017, and shall disclose whether the property includes any noncompliant plumbing fixtures as defined in subdivision (c) of Section 1101.3.
(2)The seller shall affirm that this representation is that of the seller and not a representation of any agent, and that this disclosure is not intended to be part of any contract between the buyer and the seller. The seller shall further affirm that this disclosure is not a warranty of any kind by the seller or any agent representing any principal in the transaction and is not a substitute for any inspections or warranties that any principal may wish to obtain.
(b)This section shall become operative on January 1, 2017.
SEC. 19.Section 1102.18 is added to the Civil Code, to read:1102.18.The provisions of subdivision (d) of Section 1102.1 shall apply to this article.
SEC. 20.Section 1103 of the Civil Code is amended to read:1103.(a)For purpose of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(b)Except as provided in Section 1103.1, this article applies to a sale, exchange, real property sales contract, as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any single-family residential real property.
(c)This article shall apply to the transactions described in subdivision (b) only if the seller or his or her agent is required by one or more of the following to disclose the propertys location within a hazard zone:
(1)A sellers agent for a seller of real property that is located within a special flood hazard area (any type Zone A or V) designated by the Federal Emergency Management Agency, or the seller if the seller is acting without a sellers agent, shall disclose to any prospective buyer the fact that the property is located within a special flood hazard area if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a special flood hazard area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the special flood hazard area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(2)A sellers agent for a seller of real property that is located within an area of potential flooding designated pursuant to Section 6161 of the Water Code, or the seller if the seller is acting without a sellers agent, shall disclose to any prospective buyer the fact that the property is located within an area of potential flooding if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within an inundation area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the inundation area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(3)A seller of real property that is located within a very high fire hazard severity zone, designated pursuant to Section 51178 of the Government Code, or the sellers agent, shall disclose to any prospective buyer the fact that the property is located within a very high fire hazard severity zone and is subject to the requirements of Section 51182 of the Government Code if either:
(A)The seller or the sellers agent, has actual knowledge that the property is within a very high fire hazard severity zone.
(B)A map that includes the property has been provided to the local agency pursuant to Section 51178 of the Government Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the local agency.
(4)A sellers agent for a seller of real property that is located within an earthquake fault zone, designated pursuant to Section 2622 of the Public Resources Code, or the seller, if the seller is acting without an agent, shall disclose to any prospective buyer the fact that the property is located within a delineated earthquake fault zone if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a delineated earthquake fault zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2622 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(5)A sellers agent for a seller of real property that is located within a seismic hazard zone, designated pursuant to Section 2696 of the Public Resources Code, or the seller if the seller is acting without an agent, shall disclose to any prospective buyer the fact that the property is located within a seismic hazard zone if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a seismic hazard zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2696 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(6)A seller of real property that is located within a state responsibility area determined by the board, pursuant to Section 4125 of the Public Resources Code, or the sellers agent, shall disclose to any prospective buyer the fact that the property is located within a wildland area that may contain substantial forest fire risks and hazards and is subject to the requirements of Section 4291 of the Public Resources Code if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a wildland fire zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 4125 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(d)Any waiver of the requirements of this article is void as against public policy.
SEC. 21.Section 1103.1 of the Civil Code is amended to read:1103.1.(a)This article does not apply to the following sales:
(1)Sales or transfers pursuant to court order, including, but not limited to, sales ordered by a probate court in administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, sales by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.
(2)Sales or transfers to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, transfers by any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, or sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure.
(3)Sales or transfers by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and the seller is a former owner of the property or an occupant in possession of the property within the preceding year.
(4)Sales or transfers from one coowner to one or more other coowners.
(5)Sales or transfers made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the sellers.
(6)Sales or transfers between spouses resulting from a judgment of dissolution of marriage or of legal separation of the parties or from a property settlement agreement incidental to that judgment.
(7)Sales or transfers by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(8)Sales or transfers under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(9)Sales, transfers, or exchanges to or from any governmental entity.
(b)Sales and transfers not subject to this article may be subject to other disclosure requirements, including those under Sections 8589.3, 8589.4, and 51183.5 of the Government Code and Sections 2621.9, 2694, and 4136 of the Public Resources Code. In sales not subject to this article, agents may make required disclosures in a separate writing.
(c)Notwithstanding the definition of sale in Section 10018.5 of the Business and Professions Code and Section 2079.13, the terms sale and transfer, as they are used in this section, shall have their commonly understood meanings. The changes made to this section by Assembly Bill 1289 of the 201718 Legislative Session shall not be interpreted to change the application of the law as it read prior to January 1, 2019.
SEC. 22.Section 1103.2 of the Civil Code is amended to read:1103.2.(a)The disclosures required by this article are set forth in, and shall be made on a copy of, the following Natural Hazard Disclosure Statement:
NATURAL HAZARD DISCLOSURE STATEMENT | |
This statement applies to the following property: | |
The seller and the sellers agent(s) or a third-party consultant disclose the following information with the knowledge that even though this is not a warranty, prospective buyers may rely on this information in deciding whether and on what terms to purchase the subject property. Seller hereby authorizes any agent(s) representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. | |
The following are representations made by the seller and the sellers agent(s) based on their knowledge and maps drawn by the state and federal governments. This information is a disclosure and is not intended to be part of any contract between the seller and buyer. | |
THIS REAL PROPERTY LIES WITHIN THE FOLLOWING | |
A SPECIAL FLOOD HAZARD AREA (Any type Zone A or V) designated by the Federal Emergency Management Agency. | |
Yes____ No ____Do not know and | |
AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code. | |
Yes____ No ____Do not know and | |
A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. | |
Yes____ No ____ | |
A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the states responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. | |
Yes____ No____ | |
AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. | |
Yes____ No____ | |
A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public | |
Yes (Landslide Zone)____________Yes (Liquefaction Zone) ______ No____Map not yet released by state ____ | |
THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER. | |
THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER. SELLER(S) AND BUYER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. | |
Signature of Seller(s) | Date |
Signature of Seller(s) | Date |
Sellers Agent(s) | Date |
Sellers Agent(s) | Date |
Check only one of the following: | |
Seller(s) and their agent(s) represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s) and agent(s). | |
Seller(s) and their agent(s) acknowledge that they have exercised good faith in the selection of a third-party report provider as required in Section 1103.7 of the Civil Code, and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the independent third-party disclosure provider as a substituted disclosure pursuant to Section 1103.4 of the Civil Code. Neither seller(s) nor their agent(s) (1) has independently verified the information contained in this statement and report or (2) is personally aware of any errors or inaccuracies in the information contained on the statement. This statement was prepared by the provider below: | |
Third-Party Disclosure Provider(s) | Date |
Buyer represents that he or she has read and understands this document. Pursuant to Civil Code Section 1103.8, the representations made in this Natural Hazard Disclosure Statement do not constitute all of the sellers or agents disclosure obligations in this transaction. | |
Signature of Buyer(s) | Date |
Signature of Buyer(s) | Date |
(b)If an earthquake fault zone, seismic hazard zone, very high fire hazard severity zone, or wildland fire area map or accompanying information is not of sufficient accuracy or scale that a reasonable person can determine if the subject real property is included in a natural hazard area, the seller or sellers agent shall mark Yes on the Natural Hazard Disclosure Statement. The sellers agent may mark No on the Natural Hazard Disclosure Statement if the seller attaches a report prepared pursuant to subdivision (c) of Section 1103.4 that verifies the property is not in the hazard zone. Nothing in this subdivision is intended to limit or abridge any existing duty of the seller or the sellers agent to exercise reasonable care in making a determination under this subdivision.
(c)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is no longer within a special flood hazard area, then the seller or sellers agent may mark No on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or sellers agent shall attach a copy of the Letter of Map Revision to the disclosure statement.
(d)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is within a special flood hazard area and the location of the letter has been posted pursuant to subdivision (g) of Section 8589.3 of the Government Code, then the seller or sellers agent shall mark Yes on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or sellers agent shall attach a copy of the Letter of Map Revision to the disclosure statement.
(e)The disclosure required pursuant to this article may be provided by the seller and the sellers agent in the Local Option Real Estate Disclosure Statement described in Section 1102.6a, provided that the Local Option Real Estate Disclosure Statement includes substantially the same information and substantially the same warnings that are required by this section.
(f)(1)The legal effect of a consultants report delivered to satisfy the exemption provided by Section 1103.4 is not changed when it is accompanied by a Natural Hazard Disclosure Statement.
(2)A consultants report shall always be accompanied by a completed and signed Natural Hazard Disclosure Statement.
(3)In a disclosure statement required by this section, an agent and third-party provider may cause his or her name to be preprinted in lieu of an original signature in the portions of the form reserved for signatures. The use of a preprinted name shall not change the legal effect of the acknowledgment.
(g)The disclosure required by this article is only a disclosure between the seller, the sellers agent, and the prospective buyer, and shall not be used by any other party, including, but not limited to, insurance companies, lenders, or governmental agencies, for any purpose.
(h)In any transaction in which a seller has accepted, prior to June 1, 1998, an offer to purchase, the seller, or his or her agent shall be deemed to have complied with the requirement of subdivision (a) if the seller or agent delivers to the prospective buyer a statement that includes substantially the same information and warning as the Natural Hazard Disclosure Statement.
SEC. 23.Section 1103.3 of the Civil Code is amended to read:1103.3.(a)The seller of any real property subject to this article shall deliver to the prospective buyer the written statement required by this article, as follows:
(1)In the case of a sale, as soon as practicable before transfer of title.
(2)In the case of a sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before the prospective buyers execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(b)The seller shall indicate compliance with this article either on the real property sales contract, the lease, any addendum attached thereto, or on a separate document.
(c)If any disclosure, or any material amendment of any disclosure, required to be made pursuant to this article is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person, five days after delivery by deposit in the mail, or five days after delivery of an electronic record in transactions where the parties have agreed to conduct the transaction by electronic means, pursuant to provisions of the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3), to terminate his or her offer by delivery of a written notice of termination to the seller or the sellers agent.
SEC. 24.Section 1103.4 of the Civil Code is amended to read:1103.4.(a)Neither the seller nor any sellers agent or buyers agent shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or the sellers agent or buyers agent and was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting the information.
(b)The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller, sellers agent, and buyers agent of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, or expert in natural hazard discovery dealing with matters within the scope of the professionals license or expertise shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral. In responding to that request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1103.2 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where such a statement is furnished, the expert shall not be responsible for any items of information or parts thereof, other than those expressly set forth in the statement.
(1)In responding to the request, the expert shall determine whether the property is within an airport influence area as defined in subdivision (b) of Section 11010 of the Business and Professions Code. If the property is within an airport influence area, the report shall contain the following statement:
NOTICE OF AIRPORT IN VICINITY | |
This property is presently located in the vicinity of an |
(2)In responding to the request, the expert shall determine whether the property is within the jurisdiction of the San Francisco Bay Conservation and Development Commission, as defined in Section
66620 of the Government Code. If the property is within the commissions jurisdiction, the report shall contain the following notice:
NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION JURISDICTION
This property is located within the jurisdiction of the San Francisco Bay Conservation and Development Commission. Use and development of property within the commissions jurisdiction may be subject to special regulations, restrictions, and permit requirements. You may wish to investigate and determine whether they are acceptable to you and your intended use of the property before you complete your transaction.
(3)In responding to the request, the expert shall determine whether the property is presently located within one mile of a parcel of real property designated
as Prime Farmland, Farmland of Statewide Importance, Unique Farmland, Farmland of Local Importance, or Grazing Land on the most current Important Farmland Map issued by the California Department of Conservation, Division of Land Resource Protection, utilizing solely the county-level GIS map data, if any, available on the Farmland Mapping and Monitoring Program Web site. If the residential property is within one mile of a designated farmland area, the report shall contain the following notice:
NOTICE OF RIGHT TO FARM
This property is located within one mile of a farm or ranch land designated on the current county-level GIS Important Farmland Map, issued by the California Department of Conservation, Division of Land Resource Protection. Accordingly, the property may be subject to
inconveniences or discomforts resulting from agricultural operations that are a normal and necessary aspect of living in a community with a strong rural character and a healthy agricultural sector. Customary agricultural practices in farm operations may include, but are not limited to, noise, odors, dust, light, insects, the operation of pumps and machinery, the storage and disposal of manure, bee pollination, and the ground or aerial application of fertilizers, pesticides, and herbicides. These agricultural practices may occur at any time during the 24-hour day. Individual sensitivities to those practices can vary from person to person. You may wish to consider the impacts of such agricultural practices before you complete your purchase. Please be advised that you may be barred from obtaining legal remedies against agricultural practices conducted in a manner consistent with proper and accepted
customs and standards pursuant to Section 3482.5 of the Civil Code or any pertinent local ordinance.
(4)In responding to the request, the expert shall determine, utilizing map coordinate data made available by the Office of Mine Reclamation, whether the property is presently located within one mile of a mine operation for which map coordinate data has been reported to the director pursuant to Section 2207 of the Public Resources Code. If the expert determines, from the available map coordinate data, that the residential property is located within one mile of a mine operation, the report shall contain the following notice:
NOTICE OF MINING OPERATIONS:
This property is located within one mile of a mine operation for which the mine owner or operator has reported mine location data to the Department of Conservation pursuant to Section 2207 of the Public Resources Code. Accordingly, the property may be subject to inconveniences resulting from mining operations. You may wish to consider the impacts of these practices before you complete your transaction.
SEC. 25.Section 1103.5 of the Civil Code is amended to read:1103.5.(a)After a seller and his or her agent comply with Section 1103.2, they shall be relieved of further duty under this article with respect to those items of information. The seller and the sellers agent shall not be required to provide notice to the prospective buyer if the information provided subsequently becomes inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence, unless the seller or agent has actual knowledge that the information has become inaccurate.
(b)If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence subsequent to the delivery of the required disclosures, the inaccuracy resulting therefrom does not constitute a violation of this article.
SEC. 26.Section 1103.8 of the Civil Code is amended to read:1103.8.(a)The specification of items for disclosure in this article does not limit or abridge any obligation for disclosure created by any other provision of law or that may exist in order to avoid fraud, misrepresentation, or deceit in the sale transaction. The Legislature does not intend to affect the existing obligations of the parties to a real estate contract, or their agents, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical condition of the property and previously received reports of physical inspection noted on the disclosure form provided pursuant to Section 1102.6 or 1102.6a.
(b)Nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079.
SEC. 27.Section 1103.9 of the Civil Code is amended to read:1103.9.Any disclosure made pursuant to this article may be amended in writing by the seller or the sellers agent, but the amendment shall be subject to Section 1103.3.
SEC. 28.Section 1103.14 of the Civil Code is repealed.SEC. 29.Section 1103.15 is added to the Civil Code, to read:1103.15.The provisions of subdivision (d) of Section 1102.1 shall apply to this article.
SEC. 30.Section 2079 of the Civil Code is amended to read:2079.(a)It is the duty of a real estate broker or salesperson, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to a prospective buyer of single-family residential real property or a manufactured home as defined in Section 18007 of the Health and Safety Code, to conduct a reasonably competent and diligent visual inspection of the property offered for sale and to disclose to that prospective buyer all facts materially affecting the value or desirability of the property that an investigation would reveal, if that broker has a written contract with the seller to find or obtain a buyer or is a broker who acts in cooperation with that broker to find and obtain a buyer.
(b)It is the duty of a real estate broker or salesperson, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to comply with this section and any regulations imposing standards of professional conduct adopted pursuant to Section 10080 of the Business and Professions Code with reference to Sections 10176 and 10177 of the Business and Professions Code.
SEC. 31.Section 2079.6 of the Civil Code is amended to read:2079.6.This article does not apply to sales which are required to be preceded by the furnishing, to a prospective buyer, of a copy of a public report pursuant to Section 11018.1 or Section 11234 of the Business and Professions Code and sales that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code, unless the property has been previously occupied.
SEC. 32.Section 2079.7 of the Civil Code is amended to read:2079.7.(a)If a consumer information booklet described in Section 10084.1 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 of the Civil Code, or manufactured housing, as defined in Section 18007 of the Health and Safety Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, common environmental hazards, as described in the booklet, that can affect real property.
(b)Notwithstanding subdivision (a), nothing in this section either increases or decreases the duties, if any, of sellers or brokers, including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or Section 25359.7 of the Health and Safety Code, or alters the duty of a seller or broker to disclose the existence of known environmental hazards on or affecting the real property.
SEC. 33.Section 2079.8 of the Civil Code is amended to read:2079.8.(a)If a Homeowners Guide to Earthquake Safety described in Section 10149 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers or brokers, including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, or alters the duty of a seller or broker to disclose the existence of known hazards on or affecting the real property.
SEC. 34.Section 2079.9 of the Civil Code is amended to read:2079.9.(a)If a Commercial Property Owners Guide to Earthquake Safety described in Section 10147 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers, their real estate brokers or agents under this article or under Chapter 7.5 (commencing with Section 2621) or Chapter 7.8 (commencing with Section 2690) of Division 2 of the Public Resources Code, or alters the duty of a seller, agent, or broker to disclose the existence of known hazards on or affecting the real property.
SEC. 35.Section 2079.10 of the Civil Code is amended to read:2079.10.(a)If the informational booklet published pursuant to Section 25402.9 of the Public Resources Code, concerning the statewide home energy rating program adopted pursuant to Section 25942 of the Public Resources Code, is delivered to a buyer in connection with the sale of real property, including, but not limited to, property specified in Section 1102, manufactured homes as defined in Section 18007 of the Health and Safety Code, and property subject to Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, the seller or broker is not required to provide information additional to that contained in the booklet concerning home energy ratings, and the information in the booklet shall be deemed to be adequate to inform the buyer about the existence of a statewide home energy rating program.
(b)Notwithstanding subdivision (a), nothing in this section alters any existing duty of the seller or broker under any other law including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, or Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, to disclose information concerning the existence of a home energy rating program affecting the real property.
(c)If the informational booklet or materials described in Section 375.5 of the Water Code concerning water conservation and water conservation programs are delivered to a buyer in connection with the sale of real property, including property described in subdivision (a), the seller or broker is not required to provide information concerning water conservation and water conservation programs that is additional to that contained in the booklet or materials, and the information in the booklet or materials shall be deemed to be adequate to inform the buyer about water conservation and water conservation programs.
SEC. 36.Section 2079.10.5 of the Civil Code is amended to read:2079.10.5.(a)Every contract for the sale of single-family residential real property entered into on or after July 1, 2013, shall contain, in not less than 8-point type, a notice as specified below:
NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES
This notice is being provided simply to inform you that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via the National Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at http://www.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS Internet Web site.
(b)Upon delivery of the notice to the buyer of the real property, the seller or broker is not required to provide information in addition to that contained in the notice regarding gas and hazardous liquid transmission pipelines in subdivision (a). The information in the notice shall be deemed to be adequate to inform the buyer about the existence of a statewide database of the locations of gas and hazardous liquid transmission pipelines and information from the database regarding those locations.
(c)Nothing in this section shall alter any existing duty under any other statute or decisional law imposed upon the seller or broker, including, but not limited to, the duties of a seller or broker under this article, or the duties of a seller or broker under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 37.Section 2079.10a of the Civil Code is amended to read:2079.10a.(a)Every lease or rental agreement for single-family residential real property entered into on or after July 1, 1999, any leasehold interest in real property consisting of multiunit residential property with more than four dwelling units entered into after that date, and every contract for the sale of residential real property comprised of one to four dwelling units entered into on or after that date, shall contain, in not less than 8-point type, a notice as specified in paragraph (1), (2), or (3).
(1)A contract entered into by the parties on or after July 1, 1999, and before September 1, 2005, shall contain the following notice:
Notice: The California Department of Justice, sheriffs departments, police departments serving jurisdictions of 200,000 or more, and many other local law enforcement authorities maintain for public access a database of the locations of persons required to register pursuant to subdivision (a) of Section 290.4 of the Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice also maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a 900 telephone service. Callers shall have specific information about individuals they are checking. Information regarding neighborhoods is not available through the 900 telephone service.
(2)A contract entered into by the parties on or after September 1, 2005, and before April 1, 2006, shall contain either the notice specified in paragraph (1) or the notice specified in paragraph (3).
(3)A contract entered into by the parties on or after April 1, 2006, shall contain the following notice:
Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offenders criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which the offender resides.
(b)Subject to subdivision (c), upon delivery of the notice to the lessee or buyer of the real property, the lessor, seller, or broker is not required to provide information in addition to that contained in the notice regarding the proximity of registered sex offenders. The information in the notice shall be deemed to be adequate to inform the lessee or buyer about the existence of a statewide database of the locations of registered sex offenders and information from the database regarding those locations. The information in the notice shall not give rise to any cause of action against the disclosing party by a registered sex offender.
(c)Notwithstanding subdivisions (a) and (b), nothing in this section shall alter any existing duty of the lessor, seller, or broker under any other statute or decisional law including, but not limited to, the duties of a lessor, seller, or broker under this article, or the duties of a seller or broker under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 38.Section 2079.13 of the Civil Code is amended to read:2079.13.As used in Sections 2079.7 and 2079.14 to 2079.24, inclusive, the following terms have the following meanings:
(a)Agent means a person acting under provisions of Title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained.
The agent in the real property transaction bears responsibility for that agents salespersons or broker associates who perform as agents of the agent. When a salesperson or broker associate owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by the broker for whom the salesperson or broker associate functions.
(b)Buyer means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. Buyer includes vendee or lessee of real property.
(c)Commercial real property means all real property in the state, except (1) single-family residential real property, (2) dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, (3) a mobilehome, as defined in Section 798.3, (4) vacant land, or (5) a recreational vehicle, as defined in Section 799.29.
(d)Dual agent means an agent acting, either directly or through a salesperson or broker associate, as agent for both the seller and the buyer in a real property transaction.
(e)Listing agreement means a written contract between a seller of real property and an agent, by which the agent has been authorized to sell the real property or to find or obtain a buyer, including rendering other services for which a real estate license is required to the seller pursuant to the terms of the agreement.
(f)Sellers agent means a person who has obtained a listing of real property to act as an agent for compensation.
(g)Listing price is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the sellers agent.
(h)Offering price is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property.
(i)Offer to purchase means a written contract executed by a buyer acting through a buyers agent that becomes the contract for the sale of the real property upon acceptance by the seller.
(j)Real property means any estate specified by subdivision (1) or (2) of Section 761 in property, and includes (1) single-family residential property, (2) multiunit residential property with more than four dwelling units, (3) commercial real property, (4) vacant land, (5) a ground lease coupled with improvements, or (6) a manufactured home as defined in Section 18007 of the Health and Safety Code, or a mobilehome as defined in Section 18008 of the Health and Safety Code, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code.
(k)Real property transaction means a transaction for the sale of real property in which an agent is retained by a buyer, seller, or both a buyer and seller to act in that transaction, and includes a listing or an offer to purchase.
(l)Sell, sale, or sold refers to a transaction for the transfer of real property from the seller to the buyer and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one years duration.
(m)Seller means the transferor in a real property transaction and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. Seller includes both a vendor and a lessor of real property.
(n)Buyers agent means an agent who represents a buyer in a real property transaction.
SEC. 39.Section 2079.14 of the Civil Code is amended to read:2079.14.A sellers agent and buyers agent shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and shall obtain a signed acknowledgment of receipt from that seller and buyer, except as provided in Section 2079.15, as follows:
(a)The sellers agent, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement.
(b)The buyers agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyers offer to purchase. If the offer to purchase is not prepared by the buyers agent, the buyers agent shall present the disclosure form to the buyer not later than the next business day after receiving the offer to purchase from the buyer.
SEC. 40.Section 2079.15 of the Civil Code is amended to read:2079.15.In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the agent shall set forth, sign, and date a written declaration of the facts of the refusal.
SEC. 41.Section 2079.16 of the Civil Code is amended to read:2079.16.The disclosure form required by Section 2079.14 shall have Sections 2079.13 to 2079.24, inclusive, excluding this section, printed on the back, and on the front of the disclosure form the following shall appear:
DISCLOSURE REGARDING
REAL ESTATE AGENCY RELATIONSHIP
(As required by the Civil Code)
When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction.
SELLERS AGENT
A Sellers agent under a listing agreement with the Seller acts as the agent for the Seller only. A Sellers agent or a subagent of that agent has the following affirmative obligations:
To the Seller:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Seller.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the agents duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.
An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.
BUYERS AGENT
A Buyers agent can, with a Buyers consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Sellers agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations:
To the
Buyer:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Buyer.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the agents duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.
AGENT REPRESENTING BOTH SELLER AND BUYER
A real estate agent, either acting directly or through one or more salespersons and broker associates, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.
In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer:
(a)A fiduciary duty of utmost care, integrity, honesty, and loyalty in the dealings with either the Seller or the Buyer.
(b)Other duties to the Seller and the Buyer as stated above in their respective sections.
In representing both Seller and Buyer, a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the Buyers or Sellers financial position, motivations, bargaining position, or other personal information that may impact price, including the Sellers willingness to accept a price less than the listing price or the Buyers willingness to pay a price greater than the price offered.
SELLER AND BUYER RESPONSIBILITIES
Either the purchase agreement or a separate document will contain a confirmation of which agent is representing you and whether that agent is representing you exclusively in the transaction or acting as a dual agent. Please pay attention to that confirmation to make sure it accurately reflects your understanding of your agents role.
The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.
If you are a Buyer, you have the duty to exercise reasonable care to protect yourself, including as to those facts about the property which are known to you or within your diligent attention and observation.
Both Sellers and Buyers should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change.
Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction.
This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on the reverse hereof. Read it carefully.
Agent(date) | Buyer/Seller(date) |
(Signature) | |
Salesperson or Broker Associate, if any(date) | Buyer/Seller(date) |
(Signature) | (Signature) |
(a)As soon as practicable, the buyers agent shall disclose to the buyer and seller whether the agent is acting in the real property transaction as the buyers agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the buyers agent prior to or coincident with execution of that contract by the buyer and the seller, respectively.
(b)As soon as practicable, the sellers agent shall disclose to the seller whether the sellers agent is acting in the real property transaction as the sellers agent, or as a dual agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the sellers agent prior to or coincident with the execution of that contract by the seller.
(c)The confirmation required by subdivisions (a) and (b) shall be in the following form:
(Name of Sellers Agent, Brokerage firm and license number) is the broker of (check one): | |
[]the seller; or | |
[]both the buyer and seller. (dual agent) | |
(Name of Sellers Agent and license number) is (check one): | |
[]is the Sellers Agent. (salesperson or broker associate) | |
[]is both the Buyers and Sellers Agent. (dual agent) | |
(Name of Buyers Agent, Brokerage firm and license number) is the broker of (check one): | |
[]the buyer; or | |
[]both the buyer and seller. (dual agent) | |
(Name of Buyers Agent and license number) is (check one): | |
[]the Buyers Agent. (salesperson or broker associate) | |
[]both the Buyers and Sellers Agent. (dual agent) |
(d)The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. An agents duty to provide disclosure and confirmation of representation in this section may be performed by a real estate salesperson or broker associate affiliated with that broker.
SEC. 43.Section 2079.18 of the Civil Code is repealed.SEC. 44.Section 2079.21 of the Civil Code is amended to read:2079.21.(a)A dual agent may not, without the express permission of the seller, disclose to the buyer any confidential information obtained from the seller.
(b)A dual agent may not, without the express permission of the buyer, disclose to the seller any confidential information obtained from the buyer.
(c)Confidential information means facts relating to the clients financial position, motivations, bargaining position, or other personal information that may impact price, such as the seller is willing to accept a price less than the listing price or the buyer is willing to pay a price greater than the price offered.
(d)This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price.
SEC. 45.Section 2079.22 of the Civil Code is amended to read:2079.22.Nothing in this article precludes a sellers agent from also being a buyers agent. If a seller or buyer in a transaction chooses to not be represented by an agent, that does not, of itself, make that agent a dual agent.
SEC. 46.Section 2079.25 is added to the Civil Code, to read:2079.25.The provisions of subdivision (d) of Section 1102.1 shall apply to this article.
SEC. 47.This act shall not become operative unless Assembly Bill 2884 of the 201718 Regular Session, relating to real estate, is enacted and becomes effective on January 1, 2019.
(a)For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code apply.
(b)An agent is one authorized by law to act in that capacity for that type of property and is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, or is a licensee, as defined in Section 18006 of the Health and Safety Code.
SEC. 2.Section 1087 of the Civil Code is amended to read:1087.A multiple listing service (MLS) is a facility of cooperation of agents and appraisers, operating through an intermediary that does not itself act as an agent or appraiser, through which agents establish express or implied contracts for compensation between agents that are MLS participants in accordance with its MLS rules with respect to listed properties in a listing agreement, or that may be used by agents and appraisers, pursuant to the rules of the service, to prepare market evaluations and appraisals of real property.
SEC. 3.Section 1088 of the Civil Code is amended to read:1088.A listing may not be placed in a multiple listing service unless authorized or directed by the seller in the listing.
If an agent or appraiser places a listing or other information in the multiple listing service, that agent or appraiser shall be responsible for the truth of all representations and statements made by the agent or appraiser of which that agent or appraiser had knowledge or reasonably should have had knowledge to anyone injured by their falseness or inaccuracy.
SEC. 4.Section 1089 of the Civil Code is repealed.SEC. 5.Section 1089 is added to the Civil Code, to read:1089.The provisions of subdivision (d) of Section 1102.1 shall apply to this article.
SEC. 6.Section 1090 of the Civil Code is repealed.SEC. 7.Section 1102 of the Civil Code is amended to read:1102.(a)Except as provided in Section 1102.2, this article applies to any transfer by sale, exchange, real property sales contract as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements of single-family residential property.
(b)For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(c)Any waiver of the requirements of this article is void as against public policy.
SEC. 8.Section 1102.1 of the Civil Code is amended to read:1102.1.(a)In enacting Chapter 817 of the Statutes of 1994, it was the intent of the Legislature to clarify and facilitate the use of the real estate disclosure statement, as specified in Section 1102.6. The Legislature intended the statement to be used by transferors making disclosures required under this article and by agents making disclosures required by Section 2079 on the agents portion of the real estate disclosure statement, in transfers subject to this article. In transfers not subject to this article, agents may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their agents, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a, and that nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079.
It is also the intent of the Legislature that the delivery of a real estate transfer disclosure statement may not be waived in an as is sale, as held in Loughrin v. Superior Court (1993) 15 Cal. App. 4th 1188.
(b)In enacting Chapter 677 of the Statutes of 1996, it was the intent of the Legislature to clarify and facilitate the use of the manufactured home and mobilehome transfer disclosure statement applicable to the resale of a manufactured home or mobilehome pursuant to subdivision (b) of Section 1102. The Legislature intended the statements to be used by transferors making disclosures required under this article and by agents making disclosures required by Section 2079 on the agents portion of the disclosure statement and as required by Section 18046 of the Health and Safety Code on the dealers portion of the manufactured home and mobilehome transfer disclosure statement, in transfers subject to this article. In transfers not subject to this article, agents may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their agents, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a or to affect the existing obligations of the parties to a manufactured home or mobilehome purchase contract, and nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079 or the duty of a manufactured home or mobilehome dealer or salesperson pursuant to Section 18046 of the Health and Safety Code.
It is also the intent of the Legislature that the delivery of a mobilehome transfer disclosure statement may not be waived in an as is sale.
(c)It is the intent of the Legislature that manufactured home and mobilehome dealers and salespersons and real estate brokers and salespersons use the form provided pursuant to Section 1102.6d. It is also the intent of the Legislature for sellers of manufactured homes or mobilehomes who are neither manufactured home dealers or salespersons nor real estate brokers or salespersons to use the Manufactured Home/Mobilehome Transfer Disclosure Statement contained in Section 1102.6d.
(d)Nothing in Assembly Bill 1289 of the 201718 Regular Session or Assembly Bill 2884 of the 201718 Regular Session shall be construed to affect any of the following:
(1)A real estate brokers duties under existing statutory or common law as an agent of a person who retains that broker to perform acts for which a license is required under this division.
(2)Any fiduciary duties owed by a real estate broker to a person who retains that broker to perform acts for which a license is required under this division.
(3)Any duty of disclosure or any other duties or obligations of a real estate broker, which arise under this division or other existing, applicable California law, including common law.
(4)Any duties or obligations of a salesperson or a broker associate, which arise under this division or existing, applicable California law, including common law, and duties and obligations to the salespersons or broker associates responsible broker.
(5)A responsible brokers duty of supervision and oversight for the acts of retained salespersons or broker associates, which arise under this division or other existing, applicable California law, including common law.
For purposes of this subdivision, references to existing statutory law and existing, applicable California law refer to the law as it read immediately prior to enactment of Assembly Bill 1289 of the 201718 Regular Session and Assembly Bill 2884 of the 201718 Regular Session.
SEC. 9.Section 1102.2 of the Civil Code is amended to read:1102.2.This article does not apply to the following:
(a)Sales or transfers that are required to be preceded by the furnishing to a prospective buyer of a copy of a public report pursuant to Section 11018.1 of the Business and Professions Code and transfers that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code.
(b)Sales or transfers pursuant to court order, including, but not limited to, sales ordered by a probate court in the administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, transfers by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.
(c)Sales or transfers to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure, sales to the legal owner or lienholder of a manufactured home or mobilehome by a registered owner or successor in interest who is in default, or sales by reason of any foreclosure of a security interest in a manufactured home or mobilehome.
(d)Sales or transfers by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and he or she is a former owner of the property or was an occupant in possession of the property within the preceding year.
(e)Sales or transfers from one coowner to one or more other coowners.
(f)Sales or transfers made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors.
(g)Sales or transfers between spouses resulting from a judgment of dissolution of marriage or of legal separation or from a property settlement agreement incidental to that judgment.
(h)Sales or transfers by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(i)Sales or transfers under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(j)Sales or transfers or exchanges to or from any governmental entity.
(k)Sales or transfers of any portion of a property not constituting single-family residential property.
(l)Notwithstanding the definition of sale in Section 10018.5 of the Business and Professions Code and Section 2079.13, the terms sale and transfer, as they are used in this section, shall have their commonly understood meanings. The changes made to this section by Assembly Bill 1289 of the 201718 Legislative Session shall not be interpreted to change the application of the law as it read prior to January 1, 2019.
SEC. 10.Section 1102.3 of the Civil Code is amended to read:1102.3.The seller of any single-family real property subject to this article shall deliver to the prospective buyer the completed written statement required by this article, as follows:
(a)In the case of a sale, as soon as practicable before transfer of title.
(b)In the case of sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(c)With respect to any sale subject to subdivision (a) or (b), the seller shall indicate compliance with this article on the real property sales contract, the lease, or any addendum attached thereto or on a separate document.
If any disclosure, or any material amendment of any disclosure, required to be made by this article, is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person, five days after delivery by deposit in the mail, or five days after delivery of an electronic record in transactions where the parties have agreed to conduct the transaction by electronic means, pursuant to provisions of the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3), to terminate his or her offer by delivery of a written notice of termination to the seller or the sellers agent. The period of time the prospective buyer has in which to terminate his or her offer commences when Sections I, II, and III in the form described in Section 1102.6 are completed and delivered to the buyer or buyers agent. A real estate agent may complete his or her portion of the required disclosure by providing all of the information on the agents inspection disclosure set forth in Section 1102.6.
SEC. 11.Section 1102.4 of the Civil Code is amended to read:1102.4.(a)Neither the seller nor any sellers agent or buyers agent shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or that listing or buyers agent, was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting it.
(b)The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller or any listing or buyers agent of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, structural pest control operator, contractor, a C-39 roofing contractor conducting a roof inspection pursuant to subdivision (d) of Section 7197 of the Business and Professions Code, or other expert, dealing with matters within the scope of the professionals license or expertise, shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral. In responding to such a request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1102.6 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where such a statement is furnished, the expert shall not be responsible for any items of information or parts thereof, other than those expressly set forth in the statement.
SEC. 12.Section 1102.5 of the Civil Code is amended to read:1102.5.If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any act, occurrence, or agreement subsequent to the delivery of the required disclosures, any inaccuracy resulting therefrom does not constitute a violation of this article. If at the time the disclosures are required to be made, an item of information required to be disclosed is unknown or not available to the seller, and the seller or his or her agent has made a reasonable effort to ascertain it, the seller may use an approximation of the information, provided the approximation is clearly identified as such, is reasonable, is based on the best information reasonably available to the seller or his or her agent, and is not used for the purpose of circumventing or evading this article.
SEC. 13.Section 1102.6a of the Civil Code is amended to read:1102.6a.(a)On and after July 1, 1990, any city or county may elect to require disclosures on the form set forth in subdivision (b) in addition to those disclosures required by Section 1102.6. However, this section does not affect or limit the authority of a city or county to require disclosures on a different disclosure form in connection with transactions subject to this article pursuant to an ordinance adopted prior to July 1, 1990. An ordinance like this adopted prior to July 1, 1990, may be amended thereafter to revise the disclosure requirements of the ordinance, in the discretion of the city council or county board of supervisors.
(b)Disclosures required pursuant to this section pertaining to the property proposed to be sold, shall be set forth in, and shall be made on a copy of, the following disclosure form:
PRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE INSERTED(c)This section does not preclude the use of addenda to the form specified in subdivision (b) to facilitate the required disclosures. This section does not preclude a city or county from using the disclosure form specified in subdivision (b) for a purpose other than that specified in this section.
(d)(1)On and after January 1, 2005, if a city or county adopts a different or additional disclosure form pursuant to this section regarding the proximity or effects of an airport, the statement in that form shall contain, at a minimum, the information in the statement Notice of Airport in Vicinity found in Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255.
(2)On and after January 1, 2006, if a city or county does not adopt a different or additional disclosure form pursuant to this section, then the provision of an airport influence area disclosure pursuant to Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255, or if there is not a current airport influence map, a written disclosure of an airport within two statute miles, shall be deemed to satisfy any city or county requirements for the disclosure of airports in connection with sales of real property.
SEC. 14.Section 1102.6b of the Civil Code is amended to read:1102.6b.(a)This section applies to all sales of real property for which all of the following apply:
(1)The sale is subject to this article.
(2)The property being sold is subject to a continuing lien securing the levy of special taxes pursuant to the Mello-Roos Community Facilities Act (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code), to a fixed lien assessment collected in installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or to a contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code.
(3)A notice is not required pursuant to Section 53341.5 of the Government Code.
(b)In addition to any other disclosure required pursuant to this article, the seller of any real property subject to this section shall make a good faith effort to obtain a disclosure notice concerning the special tax as provided for in Section 53340.2 of the Government Code, or a disclosure notice concerning an assessment installment as provided in Section 53754 of the Government Code, from each local agency that levies a special tax pursuant to the Mello-Roos Community Facilities Act, or that collects assessment installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or a disclosure notice concerning the contractual assessment as provided in Section 5898.24 of the Streets and Highways Code, on the property being sold, and shall deliver that notice or those notices to the prospective buyer, as long as the notices are made available by the local agency.
(c)(1)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) by delivering a disclosure notice that is substantially equivalent and obtained from another source until December 31, 2004.
(2)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the assessments collected under the contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code by delivering a disclosure notice that is substantially equivalent and obtained from another source.
(3)For the purposes of this section, a substantially equivalent disclosure notice includes, but is not limited to, a copy of the most recent years property tax bill or an itemization of current assessment amounts applicable to the property.
(d)(1)Notwithstanding subdivision (c), the seller of real property subject to this section may satisfy the disclosure notice requirements of this section by delivering a disclosure notice obtained from a nongovernmental source that satisfies the requirements of paragraph (2).
(2)A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe a special tax pursuant to the Mello-Roos Community Facilities Act levied against the property or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy a special tax pursuant to the Mello-Roos Community Facilities Act against the property, and shall include the name of the Mello-Roos entity levying taxes against the property, the annual tax due for the Mello-Roos entity for the current tax year, the maximum tax that may be levied against the property in any year, the percentage by which the maximum tax for the Mello-Roos entity may increase per year, and the date until the tax may be levied against the property for the Mello-Roos entity and a contact telephone number, if available, for further information about the Mello-Roos entity. A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe special assessments and bonds pursuant to the Improvement Bond Act of 1915 levied against the property, or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy special assessments and bonds pursuant to the Improvement Bond Act of 1915 against the property, and shall include the name of the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915, the current annual tax on the property for the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915 and a contact telephone number, if available, for further information about the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915.
(3)This section does not change the ability to make disclosures pursuant to Section 1102.4 of the Civil Code.
(e)If a disclosure received pursuant to subdivision (b), (c), or (d) has been delivered to the buyer, a seller or his or her agent is not required to provide additional information concerning, and information in the disclosure shall be deemed to satisfy the responsibility of the seller or his or her agent to inform the buyer regarding the special tax or assessment installments and the district. Notwithstanding subdivision (b), (c), or (d), nothing in this section imposes a duty to discover a special tax or assessment installments or the existence of any levying district not actually known to the agents.
SEC. 15.Section 1102.6c of the Civil Code is amended to read:1102.6c.(a)In addition to any other disclosure required pursuant to this article, it shall be the sole responsibility of the seller of any real property subject to this article, or his or her agent, to deliver to the prospective buyer a disclosure notice that includes both of the following:
(1)A notice, in at least 12-point type or a contrasting color, as follows:
California property tax law requires the Assessor to revalue real property at the time the ownership of the property changes. Because of this law, you may receive one or two supplemental tax bills, depending on when your loan closes.
The supplemental tax bills are not mailed to your lender. If you have arranged for your property tax payments to be paid through an impound account, the supplemental tax bills will not be paid by your lender. It is your responsibility to pay these supplemental bills directly to the tax collector. If you have any question concerning this matter, please call your local tax collectors office.
(2)A title, in at least 14-point type or a contrasting color, that reads as follows: Notice of Your Supplemental Property Tax Bill.
(b)The disclosure notice requirements of this section may be satisfied by delivering a disclosure notice pursuant to Section 1102.6b that satisfies the requirements of subdivision (a).
SEC. 16.Section 1102.9 of the Civil Code is amended to read:1102.9.Any disclosure made pursuant to this article may be amended in writing by the seller or his or her agent, but the amendment shall be subject to Section 1102.3 or 1102.3a.
SEC. 17.Section 1102.14 of the Civil Code is repealed.SEC. 18.Section 1102.155 of the Civil Code is amended to read:1102.155.(a)(1)The seller of single-family residential real property subject to this article shall disclose, in writing, that Section 1101.4 requires that California single-family residences be equipped with water-conserving plumbing fixtures on or after January 1, 2017, and shall disclose whether the property includes any noncompliant plumbing fixtures as defined in subdivision (c) of Section 1101.3.
(2)The seller shall affirm that this representation is that of the seller and not a representation of any agent, and that this disclosure is not intended to be part of any contract between the buyer and the seller. The seller shall further affirm that this disclosure is not a warranty of any kind by the seller or any agent representing any principal in the transaction and is not a substitute for any inspections or warranties that any principal may wish to obtain.
(b)This section shall become operative on January 1, 2017.
SEC. 19.Section 1102.18 is added to the Civil Code, to read:1102.18.The provisions of subdivision (d) of Section 1102.1 shall apply to this article.
SEC. 20.Section 1103 of the Civil Code is amended to read:1103.(a)For purpose of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(b)Except as provided in Section 1103.1, this article applies to a sale, exchange, real property sales contract, as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any single-family residential real property.
(c)This article shall apply to the transactions described in subdivision (b) only if the seller or his or her agent is required by one or more of the following to disclose the propertys location within a hazard zone:
(1)A sellers agent for a seller of real property that is located within a special flood hazard area (any type Zone A or V) designated by the Federal Emergency Management Agency, or the seller if the seller is acting without a sellers agent, shall disclose to any prospective buyer the fact that the property is located within a special flood hazard area if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a special flood hazard area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the special flood hazard area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(2)A sellers agent for a seller of real property that is located within an area of potential flooding designated pursuant to Section 6161 of the Water Code, or the seller if the seller is acting without a sellers agent, shall disclose to any prospective buyer the fact that the property is located within an area of potential flooding if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within an inundation area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the inundation area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(3)A seller of real property that is located within a very high fire hazard severity zone, designated pursuant to Section 51178 of the Government Code, or the sellers agent, shall disclose to any prospective buyer the fact that the property is located within a very high fire hazard severity zone and is subject to the requirements of Section 51182 of the Government Code if either:
(A)The seller or the sellers agent, has actual knowledge that the property is within a very high fire hazard severity zone.
(B)A map that includes the property has been provided to the local agency pursuant to Section 51178 of the Government Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the local agency.
(4)A sellers agent for a seller of real property that is located within an earthquake fault zone, designated pursuant to Section 2622 of the Public Resources Code, or the seller, if the seller is acting without an agent, shall disclose to any prospective buyer the fact that the property is located within a delineated earthquake fault zone if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a delineated earthquake fault zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2622 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(5)A sellers agent for a seller of real property that is located within a seismic hazard zone, designated pursuant to Section 2696 of the Public Resources Code, or the seller if the seller is acting without an agent, shall disclose to any prospective buyer the fact that the property is located within a seismic hazard zone if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a seismic hazard zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2696 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(6)A seller of real property that is located within a state responsibility area determined by the board, pursuant to Section 4125 of the Public Resources Code, or the sellers agent, shall disclose to any prospective buyer the fact that the property is located within a wildland area that may contain substantial forest fire risks and hazards and is subject to the requirements of Section 4291 of the Public Resources Code if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a wildland fire zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 4125 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(d)Any waiver of the requirements of this article is void as against public policy.
SEC. 21.Section 1103.1 of the Civil Code is amended to read:1103.1.(a)This article does not apply to the following sales:
(1)Sales or transfers pursuant to court order, including, but not limited to, sales ordered by a probate court in administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, sales by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.
(2)Sales or transfers to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, transfers by any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, or sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure.
(3)Sales or transfers by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and the seller is a former owner of the property or an occupant in possession of the property within the preceding year.
(4)Sales or transfers from one coowner to one or more other coowners.
(5)Sales or transfers made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the sellers.
(6)Sales or transfers between spouses resulting from a judgment of dissolution of marriage or of legal separation of the parties or from a property settlement agreement incidental to that judgment.
(7)Sales or transfers by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(8)Sales or transfers under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(9)Sales, transfers, or exchanges to or from any governmental entity.
(b)Sales and transfers not subject to this article may be subject to other disclosure requirements, including those under Sections 8589.3, 8589.4, and 51183.5 of the Government Code and Sections 2621.9, 2694, and 4136 of the Public Resources Code. In sales not subject to this article, agents may make required disclosures in a separate writing.
(c)Notwithstanding the definition of sale in Section 10018.5 of the Business and Professions Code and Section 2079.13, the terms sale and transfer, as they are used in this section, shall have their commonly understood meanings. The changes made to this section by Assembly Bill 1289 of the 201718 Legislative Session shall not be interpreted to change the application of the law as it read prior to January 1, 2019.
SEC. 22.Section 1103.2 of the Civil Code is amended to read:1103.2.(a)The disclosures required by this article are set forth in, and shall be made on a copy of, the following Natural Hazard Disclosure Statement:
NATURAL HAZARD DISCLOSURE STATEMENT | |
This statement applies to the following property: | |
The seller and the sellers agent(s) or a third-party consultant disclose the following information with the knowledge that even though this is not a warranty, prospective buyers may rely on this information in deciding whether and on what terms to purchase the subject property. Seller hereby authorizes any agent(s) representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. | |
The following are representations made by the seller and the sellers agent(s) based on their knowledge and maps drawn by the state and federal governments. This information is a disclosure and is not intended to be part of any contract between the seller and buyer. | |
THIS REAL PROPERTY LIES WITHIN THE FOLLOWING | |
A SPECIAL FLOOD HAZARD AREA (Any type Zone A or V) designated by the Federal Emergency Management Agency. | |
Yes____ No ____Do not know and | |
AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code. | |
Yes____ No ____Do not know and | |
A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. | |
Yes____ No ____ | |
A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the states responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. | |
Yes____ No____ | |
AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. | |
Yes____ No____ | |
A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public | |
Yes (Landslide Zone)____________Yes (Liquefaction Zone) ______ No____Map not yet released by state ____ | |
THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER. | |
THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER. SELLER(S) AND BUYER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. | |
Signature of Seller(s) | Date |
Signature of Seller(s) | Date |
Sellers Agent(s) | Date |
Sellers Agent(s) | Date |
Check only one of the following: | |
Seller(s) and their agent(s) represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s) and agent(s). | |
Seller(s) and their agent(s) acknowledge that they have exercised good faith in the selection of a third-party report provider as required in Section 1103.7 of the Civil Code, and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the independent third-party disclosure provider as a substituted disclosure pursuant to Section 1103.4 of the Civil Code. Neither seller(s) nor their agent(s) (1) has independently verified the information contained in this statement and report or (2) is personally aware of any errors or inaccuracies in the information contained on the statement. This statement was prepared by the provider below: | |
Third-Party Disclosure Provider(s) | Date |
Buyer represents that he or she has read and understands this document. Pursuant to Civil Code Section 1103.8, the representations made in this Natural Hazard Disclosure Statement do not constitute all of the sellers or agents disclosure obligations in this transaction. | |
Signature of Buyer(s) | Date |
Signature of Buyer(s) | Date |
(b)If an earthquake fault zone, seismic hazard zone, very high fire hazard severity zone, or wildland fire area map or accompanying information is not of sufficient accuracy or scale that a reasonable person can determine if the subject real property is included in a natural hazard area, the seller or sellers agent shall mark Yes on the Natural Hazard Disclosure Statement. The sellers agent may mark No on the Natural Hazard Disclosure Statement if the seller attaches a report prepared pursuant to subdivision (c) of Section 1103.4 that verifies the property is not in the hazard zone. Nothing in this subdivision is intended to limit or abridge any existing duty of the seller or the sellers agent to exercise reasonable care in making a determination under this subdivision.
(c)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is no longer within a special flood hazard area, then the seller or sellers agent may mark No on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or sellers agent shall attach a copy of the Letter of Map Revision to the disclosure statement.
(d)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is within a special flood hazard area and the location of the letter has been posted pursuant to subdivision (g) of Section 8589.3 of the Government Code, then the seller or sellers agent shall mark Yes on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or sellers agent shall attach a copy of the Letter of Map Revision to the disclosure statement.
(e)The disclosure required pursuant to this article may be provided by the seller and the sellers agent in the Local Option Real Estate Disclosure Statement described in Section 1102.6a, provided that the Local Option Real Estate Disclosure Statement includes substantially the same information and substantially the same warnings that are required by this section.
(f)(1)The legal effect of a consultants report delivered to satisfy the exemption provided by Section 1103.4 is not changed when it is accompanied by a Natural Hazard Disclosure Statement.
(2)A consultants report shall always be accompanied by a completed and signed Natural Hazard Disclosure Statement.
(3)In a disclosure statement required by this section, an agent and third-party provider may cause his or her name to be preprinted in lieu of an original signature in the portions of the form reserved for signatures. The use of a preprinted name shall not change the legal effect of the acknowledgment.
(g)The disclosure required by this article is only a disclosure between the seller, the sellers agent, and the prospective buyer, and shall not be used by any other party, including, but not limited to, insurance companies, lenders, or governmental agencies, for any purpose.
(h)In any transaction in which a seller has accepted, prior to June 1, 1998, an offer to purchase, the seller, or his or her agent shall be deemed to have complied with the requirement of subdivision (a) if the seller or agent delivers to the prospective buyer a statement that includes substantially the same information and warning as the Natural Hazard Disclosure Statement.
SEC. 23.Section 1103.3 of the Civil Code is amended to read:1103.3.(a)The seller of any real property subject to this article shall deliver to the prospective buyer the written statement required by this article, as follows:
(1)In the case of a sale, as soon as practicable before transfer of title.
(2)In the case of a sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before the prospective buyers execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(b)The seller shall indicate compliance with this article either on the real property sales contract, the lease, any addendum attached thereto, or on a separate document.
(c)If any disclosure, or any material amendment of any disclosure, required to be made pursuant to this article is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person, five days after delivery by deposit in the mail, or five days after delivery of an electronic record in transactions where the parties have agreed to conduct the transaction by electronic means, pursuant to provisions of the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3), to terminate his or her offer by delivery of a written notice of termination to the seller or the sellers agent.
SEC. 24.Section 1103.4 of the Civil Code is amended to read:1103.4.(a)Neither the seller nor any sellers agent or buyers agent shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or the sellers agent or buyers agent and was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting the information.
(b)The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller, sellers agent, and buyers agent of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, or expert in natural hazard discovery dealing with matters within the scope of the professionals license or expertise shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral. In responding to that request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1103.2 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where such a statement is furnished, the expert shall not be responsible for any items of information or parts thereof, other than those expressly set forth in the statement.
(1)In responding to the request, the expert shall determine whether the property is within an airport influence area as defined in subdivision (b) of Section 11010 of the Business and Professions Code. If the property is within an airport influence area, the report shall contain the following statement:
NOTICE OF AIRPORT IN VICINITY | |
This property is presently located in the vicinity of an |
(2)In responding to the request, the expert shall determine whether the property is within the jurisdiction of the San Francisco Bay Conservation and Development Commission, as defined in Section
66620 of the Government Code. If the property is within the commissions jurisdiction, the report shall contain the following notice:
NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION JURISDICTION
This property is located within the jurisdiction of the San Francisco Bay Conservation and Development Commission. Use and development of property within the commissions jurisdiction may be subject to special regulations, restrictions, and permit requirements. You may wish to investigate and determine whether they are acceptable to you and your intended use of the property before you complete your transaction.
(3)In responding to the request, the expert shall determine whether the property is presently located within one mile of a parcel of real property designated
as Prime Farmland, Farmland of Statewide Importance, Unique Farmland, Farmland of Local Importance, or Grazing Land on the most current Important Farmland Map issued by the California Department of Conservation, Division of Land Resource Protection, utilizing solely the county-level GIS map data, if any, available on the Farmland Mapping and Monitoring Program Web site. If the residential property is within one mile of a designated farmland area, the report shall contain the following notice:
NOTICE OF RIGHT TO FARM
This property is located within one mile of a farm or ranch land designated on the current county-level GIS Important Farmland Map, issued by the California Department of Conservation, Division of Land Resource Protection. Accordingly, the property may be subject to
inconveniences or discomforts resulting from agricultural operations that are a normal and necessary aspect of living in a community with a strong rural character and a healthy agricultural sector. Customary agricultural practices in farm operations may include, but are not limited to, noise, odors, dust, light, insects, the operation of pumps and machinery, the storage and disposal of manure, bee pollination, and the ground or aerial application of fertilizers, pesticides, and herbicides. These agricultural practices may occur at any time during the 24-hour day. Individual sensitivities to those practices can vary from person to person. You may wish to consider the impacts of such agricultural practices before you complete your purchase. Please be advised that you may be barred from obtaining legal remedies against agricultural practices conducted in a manner consistent with proper and accepted
customs and standards pursuant to Section 3482.5 of the Civil Code or any pertinent local ordinance.
(4)In responding to the request, the expert shall determine, utilizing map coordinate data made available by the Office of Mine Reclamation, whether the property is presently located within one mile of a mine operation for which map coordinate data has been reported to the director pursuant to Section 2207 of the Public Resources Code. If the expert determines, from the available map coordinate data, that the residential property is located within one mile of a mine operation, the report shall contain the following notice:
NOTICE OF MINING OPERATIONS:
This property is located within one mile of a mine operation for which the mine owner or operator has reported mine location data to the Department of Conservation pursuant to Section 2207 of the Public Resources Code. Accordingly, the property may be subject to inconveniences resulting from mining operations. You may wish to consider the impacts of these practices before you complete your transaction.
SEC. 25.Section 1103.5 of the Civil Code is amended to read:1103.5.(a)After a seller and his or her agent comply with Section 1103.2, they shall be relieved of further duty under this article with respect to those items of information. The seller and the sellers agent shall not be required to provide notice to the prospective buyer if the information provided subsequently becomes inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence, unless the seller or agent has actual knowledge that the information has become inaccurate.
(b)If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence subsequent to the delivery of the required disclosures, the inaccuracy resulting therefrom does not constitute a violation of this article.
SEC. 26.Section 1103.8 of the Civil Code is amended to read:1103.8.(a)The specification of items for disclosure in this article does not limit or abridge any obligation for disclosure created by any other provision of law or that may exist in order to avoid fraud, misrepresentation, or deceit in the sale transaction. The Legislature does not intend to affect the existing obligations of the parties to a real estate contract, or their agents, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical condition of the property and previously received reports of physical inspection noted on the disclosure form provided pursuant to Section 1102.6 or 1102.6a.
(b)Nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079.
SEC. 27.Section 1103.9 of the Civil Code is amended to read:1103.9.Any disclosure made pursuant to this article may be amended in writing by the seller or the sellers agent, but the amendment shall be subject to Section 1103.3.
SEC. 28.Section 1103.14 of the Civil Code is repealed.SEC. 29.Section 1103.15 is added to the Civil Code, to read:1103.15.The provisions of subdivision (d) of Section 1102.1 shall apply to this article.
SEC. 30.Section 2079 of the Civil Code is amended to read:2079.(a)It is the duty of a real estate broker or salesperson, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to a prospective buyer of single-family residential real property or a manufactured home as defined in Section 18007 of the Health and Safety Code, to conduct a reasonably competent and diligent visual inspection of the property offered for sale and to disclose to that prospective buyer all facts materially affecting the value or desirability of the property that an investigation would reveal, if that broker has a written contract with the seller to find or obtain a buyer or is a broker who acts in cooperation with that broker to find and obtain a buyer.
(b)It is the duty of a real estate broker or salesperson, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to comply with this section and any regulations imposing standards of professional conduct adopted pursuant to Section 10080 of the Business and Professions Code with reference to Sections 10176 and 10177 of the Business and Professions Code.
SEC. 31.Section 2079.6 of the Civil Code is amended to read:2079.6.This article does not apply to sales which are required to be preceded by the furnishing, to a prospective buyer, of a copy of a public report pursuant to Section 11018.1 or Section 11234 of the Business and Professions Code and sales that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code, unless the property has been previously occupied.
SEC. 32.Section 2079.7 of the Civil Code is amended to read:2079.7.(a)If a consumer information booklet described in Section 10084.1 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 of the Civil Code, or manufactured housing, as defined in Section 18007 of the Health and Safety Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, common environmental hazards, as described in the booklet, that can affect real property.
(b)Notwithstanding subdivision (a), nothing in this section either increases or decreases the duties, if any, of sellers or brokers, including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or Section 25359.7 of the Health and Safety Code, or alters the duty of a seller or broker to disclose the existence of known environmental hazards on or affecting the real property.
SEC. 33.Section 2079.8 of the Civil Code is amended to read:2079.8.(a)If a Homeowners Guide to Earthquake Safety described in Section 10149 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers or brokers, including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, or alters the duty of a seller or broker to disclose the existence of known hazards on or affecting the real property.
SEC. 34.Section 2079.9 of the Civil Code is amended to read:2079.9.(a)If a Commercial Property Owners Guide to Earthquake Safety described in Section 10147 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers, their real estate brokers or agents under this article or under Chapter 7.5 (commencing with Section 2621) or Chapter 7.8 (commencing with Section 2690) of Division 2 of the Public Resources Code, or alters the duty of a seller, agent, or broker to disclose the existence of known hazards on or affecting the real property.
SEC. 35.Section 2079.10 of the Civil Code is amended to read:2079.10.(a)If the informational booklet published pursuant to Section 25402.9 of the Public Resources Code, concerning the statewide home energy rating program adopted pursuant to Section 25942 of the Public Resources Code, is delivered to a buyer in connection with the sale of real property, including, but not limited to, property specified in Section 1102, manufactured homes as defined in Section 18007 of the Health and Safety Code, and property subject to Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, the seller or broker is not required to provide information additional to that contained in the booklet concerning home energy ratings, and the information in the booklet shall be deemed to be adequate to inform the buyer about the existence of a statewide home energy rating program.
(b)Notwithstanding subdivision (a), nothing in this section alters any existing duty of the seller or broker under any other law including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, or Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, to disclose information concerning the existence of a home energy rating program affecting the real property.
(c)If the informational booklet or materials described in Section 375.5 of the Water Code concerning water conservation and water conservation programs are delivered to a buyer in connection with the sale of real property, including property described in subdivision (a), the seller or broker is not required to provide information concerning water conservation and water conservation programs that is additional to that contained in the booklet or materials, and the information in the booklet or materials shall be deemed to be adequate to inform the buyer about water conservation and water conservation programs.
SEC. 36.Section 2079.10.5 of the Civil Code is amended to read:2079.10.5.(a)Every contract for the sale of single-family residential real property entered into on or after July 1, 2013, shall contain, in not less than 8-point type, a notice as specified below:
NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES
This notice is being provided simply to inform you that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via the National Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at http://www.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS Internet Web site.
(b)Upon delivery of the notice to the buyer of the real property, the seller or broker is not required to provide information in addition to that contained in the notice regarding gas and hazardous liquid transmission pipelines in subdivision (a). The information in the notice shall be deemed to be adequate to inform the buyer about the existence of a statewide database of the locations of gas and hazardous liquid transmission pipelines and information from the database regarding those locations.
(c)Nothing in this section shall alter any existing duty under any other statute or decisional law imposed upon the seller or broker, including, but not limited to, the duties of a seller or broker under this article, or the duties of a seller or broker under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 37.Section 2079.10a of the Civil Code is amended to read:2079.10a.(a)Every lease or rental agreement for single-family residential real property entered into on or after July 1, 1999, any leasehold interest in real property consisting of multiunit residential property with more than four dwelling units entered into after that date, and every contract for the sale of residential real property comprised of one to four dwelling units entered into on or after that date, shall contain, in not less than 8-point type, a notice as specified in paragraph (1), (2), or (3).
(1)A contract entered into by the parties on or after July 1, 1999, and before September 1, 2005, shall contain the following notice:
Notice: The California Department of Justice, sheriffs departments, police departments serving jurisdictions of 200,000 or more, and many other local law enforcement authorities maintain for public access a database of the locations of persons required to register pursuant to subdivision (a) of Section 290.4 of the Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice also maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a 900 telephone service. Callers shall have specific information about individuals they are checking. Information regarding neighborhoods is not available through the 900 telephone service.
(2)A contract entered into by the parties on or after September 1, 2005, and before April 1, 2006, shall contain either the notice specified in paragraph (1) or the notice specified in paragraph (3).
(3)A contract entered into by the parties on or after April 1, 2006, shall contain the following notice:
Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offenders criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which the offender resides.
(b)Subject to subdivision (c), upon delivery of the notice to the lessee or buyer of the real property, the lessor, seller, or broker is not required to provide information in addition to that contained in the notice regarding the proximity of registered sex offenders. The information in the notice shall be deemed to be adequate to inform the lessee or buyer about the existence of a statewide database of the locations of registered sex offenders and information from the database regarding those locations. The information in the notice shall not give rise to any cause of action against the disclosing party by a registered sex offender.
(c)Notwithstanding subdivisions (a) and (b), nothing in this section shall alter any existing duty of the lessor, seller, or broker under any other statute or decisional law including, but not limited to, the duties of a lessor, seller, or broker under this article, or the duties of a seller or broker under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 38.Section 2079.13 of the Civil Code is amended to read:2079.13.As used in Sections 2079.7 and 2079.14 to 2079.24, inclusive, the following terms have the following meanings:
(a)Agent means a person acting under provisions of Title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained.
The agent in the real property transaction bears responsibility for that agents salespersons or broker associates who perform as agents of the agent. When a salesperson or broker associate owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by the broker for whom the salesperson or broker associate functions.
(b)Buyer means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. Buyer includes vendee or lessee of real property.
(c)Commercial real property means all real property in the state, except (1) single-family residential real property, (2) dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, (3) a mobilehome, as defined in Section 798.3, (4) vacant land, or (5) a recreational vehicle, as defined in Section 799.29.
(d)Dual agent means an agent acting, either directly or through a salesperson or broker associate, as agent for both the seller and the buyer in a real property transaction.
(e)Listing agreement means a written contract between a seller of real property and an agent, by which the agent has been authorized to sell the real property or to find or obtain a buyer, including rendering other services for which a real estate license is required to the seller pursuant to the terms of the agreement.
(f)Sellers agent means a person who has obtained a listing of real property to act as an agent for compensation.
(g)Listing price is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the sellers agent.
(h)Offering price is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property.
(i)Offer to purchase means a written contract executed by a buyer acting through a buyers agent that becomes the contract for the sale of the real property upon acceptance by the seller.
(j)Real property means any estate specified by subdivision (1) or (2) of Section 761 in property, and includes (1) single-family residential property, (2) multiunit residential property with more than four dwelling units, (3) commercial real property, (4) vacant land, (5) a ground lease coupled with improvements, or (6) a manufactured home as defined in Section 18007 of the Health and Safety Code, or a mobilehome as defined in Section 18008 of the Health and Safety Code, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code.
(k)Real property transaction means a transaction for the sale of real property in which an agent is retained by a buyer, seller, or both a buyer and seller to act in that transaction, and includes a listing or an offer to purchase.
(l)Sell, sale, or sold refers to a transaction for the transfer of real property from the seller to the buyer and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one years duration.
(m)Seller means the transferor in a real property transaction and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. Seller includes both a vendor and a lessor of real property.
(n)Buyers agent means an agent who represents a buyer in a real property transaction.
SEC. 39.Section 2079.14 of the Civil Code is amended to read:2079.14.A sellers agent and buyers agent shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and shall obtain a signed acknowledgment of receipt from that seller and buyer, except as provided in Section 2079.15, as follows:
(a)The sellers agent, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement.
(b)The buyers agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyers offer to purchase. If the offer to purchase is not prepared by the buyers agent, the buyers agent shall present the disclosure form to the buyer not later than the next business day after receiving the offer to purchase from the buyer.
SEC. 40.Section 2079.15 of the Civil Code is amended to read:2079.15.In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the agent shall set forth, sign, and date a written declaration of the facts of the refusal.
SEC. 41.Section 2079.16 of the Civil Code is amended to read:2079.16.The disclosure form required by Section 2079.14 shall have Sections 2079.13 to 2079.24, inclusive, excluding this section, printed on the back, and on the front of the disclosure form the following shall appear:
DISCLOSURE REGARDING
REAL ESTATE AGENCY RELATIONSHIP
(As required by the Civil Code)
When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction.
SELLERS AGENT
A Sellers agent under a listing agreement with the Seller acts as the agent for the Seller only. A Sellers agent or a subagent of that agent has the following affirmative obligations:
To the Seller:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Seller.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the agents duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.
An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.
BUYERS AGENT
A Buyers agent can, with a Buyers consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Sellers agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations:
To the
Buyer:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Buyer.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the agents duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.
AGENT REPRESENTING BOTH SELLER AND BUYER
A real estate agent, either acting directly or through one or more salespersons and broker associates, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.
In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer:
(a)A fiduciary duty of utmost care, integrity, honesty, and loyalty in the dealings with either the Seller or the Buyer.
(b)Other duties to the Seller and the Buyer as stated above in their respective sections.
In representing both Seller and Buyer, a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the Buyers or Sellers financial position, motivations, bargaining position, or other personal information that may impact price, including the Sellers willingness to accept a price less than the listing price or the Buyers willingness to pay a price greater than the price offered.
SELLER AND BUYER RESPONSIBILITIES
Either the purchase agreement or a separate document will contain a confirmation of which agent is representing you and whether that agent is representing you exclusively in the transaction or acting as a dual agent. Please pay attention to that confirmation to make sure it accurately reflects your understanding of your agents role.
The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.
If you are a Buyer, you have the duty to exercise reasonable care to protect yourself, including as to those facts about the property which are known to you or within your diligent attention and observation.
Both Sellers and Buyers should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change.
Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction.
This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on the reverse hereof. Read it carefully.
Agent(date) | Buyer/Seller(date) |
(Signature) | |
Salesperson or Broker Associate, if any(date) | Buyer/Seller(date) |
(Signature) | (Signature) |
(a)As soon as practicable, the buyers agent shall disclose to the buyer and seller whether the agent is acting in the real property transaction as the buyers agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the buyers agent prior to or coincident with execution of that contract by the buyer and the seller, respectively.
(b)As soon as practicable, the sellers agent shall disclose to the seller whether the sellers agent is acting in the real property transaction as the sellers agent, or as a dual agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the sellers agent prior to or coincident with the execution of that contract by the seller.
(c)The confirmation required by subdivisions (a) and (b) shall be in the following form:
(Name of Sellers Agent, Brokerage firm and license number) is the broker of (check one): | |
[]the seller; or | |
[]both the buyer and seller. (dual agent) | |
(Name of Sellers Agent and license number) is (check one): | |
[]is the Sellers Agent. (salesperson or broker associate) | |
[]is both the Buyers and Sellers Agent. (dual agent) | |
(Name of Buyers Agent, Brokerage firm and license number) is the broker of (check one): | |
[]the buyer; or | |
[]both the buyer and seller. (dual agent) | |
(Name of Buyers Agent and license number) is (check one): | |
[]the Buyers Agent. (salesperson or broker associate) | |
[]both the Buyers and Sellers Agent. (dual agent) |
(d)The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. An agents duty to provide disclosure and confirmation of representation in this section may be performed by a real estate salesperson or broker associate affiliated with that broker.
SEC. 43.Section 2079.18 of the Civil Code is repealed.SEC. 44.Section 2079.21 of the Civil Code is amended to read:2079.21.(a)A dual agent may not, without the express permission of the seller, disclose to the buyer any confidential information obtained from the seller.
(b)A dual agent may not, without the express permission of the buyer, disclose to the seller any confidential information obtained from the buyer.
(c)Confidential information means facts relating to the clients financial position, motivations, bargaining position, or other personal information that may impact price, such as the seller is willing to accept a price less than the listing price or the buyer is willing to pay a price greater than the price offered.
(d)This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price.
SEC. 45.Section 2079.22 of the Civil Code is amended to read:2079.22.Nothing in this article precludes a sellers agent from also being a buyers agent. If a seller or buyer in a transaction chooses to not be represented by an agent, that does not, of itself, make that agent a dual agent.
SEC. 46.Section 2079.25 is added to the Civil Code, to read:2079.25.The provisions of subdivision (d) of Section 1102.1 shall apply to this article.
SEC. 47.This act shall not become operative unless Assembly Bill 2884 of the 201718 Regular Session, relating to real estate, is enacted and becomes effective on January 1, 2019.
(a)For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code apply.
(b)An agent is one authorized by law to act in that capacity for that type of property and is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, or is a licensee, as defined in Section 18006 of the Health and Safety Code.
SEC. 2.Section 1087 of the Civil Code is amended to read:1087.A multiple listing service (MLS) is a facility of cooperation of agents and appraisers, operating through an intermediary that does not itself act as an agent or appraiser, through which agents establish express or implied contracts for compensation between real estate brokers agents that are MLS participants in accordance with its MLS rules with respect to listed properties in a listing agreement, or that may be used by agents and appraisers, pursuant to the rules of the service, to prepare market evaluations and appraisals of real property.
SEC. 3.Section 1088 of the Civil Code is amended to read:1088.A listing may not be placed in a multiple listing service unless authorized or directed by the seller in the listing.
If an agent or appraiser places a listing or other information in the multiple listing service, that agent or appraiser shall be responsible for the truth of all representations and statements made by the agent or appraiser of which that agent or appraiser had knowledge or reasonably should have had knowledge to anyone injured by their falseness or inaccuracy.
SEC. 4.Section 1089 of the Civil Code is repealed.SEC. 5.Section 1090 of the Civil Code is amended to read:1090.Nothing in this article shall preclude a listing agent from also being the buyers agent.SEC. 6.Section 1090.1 is added to the Civil Code, to read:1090.1.Nothing in Assembly Bill 1289 of the 20172018 Regular Session or in Assembly Bill 2884 of the 201718 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciarys responsibilities and obligations to disclose information relative to a real estate transaction pursuant to this article, Article 1.5 (commencing with Section 1102) of Chapter 2, or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3.SEC. 5.Section 1089 is added to the Civil Code, to read:1089.The provisions of subdivision (d) of Section 1102.1 shall apply to this article.
SEC. 6.Section 1090 of the Civil Code is repealed.1090.Nothing in this article shall preclude a listing agent from also being the selling agent.SEC. 7.Section 1102 of the Civil Code is amended to read:1102.(a)Except as provided in Section 1102.2, this article applies to any sale of transfer by sale, exchange, real property sales contract as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements of single-family residential property.
(b)For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(c)Any waiver of the requirements of this article is void as against public policy.
SEC. 8.Section 1102.1 of the Civil Code is amended to read:1102.1.(a)In enacting Chapter 817 of the Statutes of 1994, it was the intent of the Legislature to clarify and facilitate the use of the real estate disclosure statement, as specified in Section 1102.6. The Legislature intended the statement to be used by transferors making disclosures required under this article and by agents making disclosures required by Section 2079 on the agents portion of the real estate disclosure statement, in transfers subject to this article. In transfers not subject to this article, agents may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their agents, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a, and that nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079.
It is also the intent of the Legislature that the delivery of a real estate transfer disclosure statement may not be waived in an as is sale, as held in Loughrin v. Superior Court (1993) 15 Cal. App. 4th 1188.
(b)In enacting Chapter 677 of the Statutes of 1996, it was the intent of the Legislature to clarify and facilitate the use of the manufactured home and mobilehome transfer disclosure statement applicable to the resale of a manufactured home or mobilehome pursuant to subdivision (b) of Section 1102. The Legislature intended the statements to be used by transferors making disclosures required under this article and by agents making disclosures required by Section 2079 on the agents portion of the disclosure statement and as required by Section 18046 of the Health and Safety Code on the dealers portion of the manufactured home and mobilehome transfer disclosure statement, in transfers subject to this article. In transfers not subject to this article, agents may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their agents, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a or to affect the existing obligations of the parties to a manufactured home or mobilehome purchase contract, and nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079 or the duty of a manufactured home or mobilehome dealer or salesperson pursuant to Section 18046 of the Health and Safety Code.
It is also the intent of the Legislature that the delivery of a mobilehome transfer disclosure statement may not be waived in an as is sale.
(c)It is the intent of the Legislature that manufactured home and mobilehome dealers and salespersons and real estate brokers and salespersons use the form provided pursuant to Section 1102.6d. It is also the intent of the Legislature for sellers of manufactured homes or mobilehomes who are neither manufactured home dealers or salespersons nor real estate brokers or salespersons to use the Manufactured Home/Mobilehome Transfer Disclosure Statement contained in Section 1102.6d.
(d)Nothing in Assembly Bill 1289 of the 201718 Regular Session or Assembly Bill 2884 of the 201718 Regular Session shall be construed to affect any of the following:
(1)A real estate brokers duties under existing statutory or common law as an agent of a person who retains that broker to perform acts for which a license is required under this division.
(2)Any fiduciary duties owed by a real estate broker to a person who retains that broker to perform acts for which a license is required under this division.
(3)Any duty of disclosure or any other duties or obligations of a real estate broker, which arise under this division or other existing, applicable California law, including common law.
(4)Any duties or obligations of a salesperson or a broker associate, which arise under this division or existing, applicable California law, including common law, and duties and obligations to the salespersons or broker associates responsible broker.
(5)A responsible brokers duty of supervision and oversight for the acts of retained salespersons or broker associates, which arise under this division or other existing, applicable California law, including common law.
For purposes of this subdivision, references to existing statutory law and existing, applicable California law refer to the law as it read immediately prior to enactment of Assembly Bill 1289 of the 201718 Regular Session and Assembly Bill 2884 of the 201718 Regular Session.
SEC. 8.SEC. 9.Section 1102.2 of the Civil Code is amended to read:1102.2.This article does not apply to the following:
(a)Sales or transfers that are required to be preceded by the furnishing to a prospective buyer of a copy of a public report pursuant to Section 11018.1 of the Business and Professions Code and transfers that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code.
(b)Sales or transfers pursuant to court order, including, but not limited to, sales ordered by a probate court in the administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, transfers by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.
(c)Sales or transfers to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure, sales to the legal owner or lienholder of a manufactured home or mobilehome by a registered owner or successor in interest who is in default, or sales by reason of any foreclosure of a security interest in a manufactured home or mobilehome.
(d)Sales or transfers by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and he or she is a former owner of the property or was an occupant in possession of the property within the preceding year.
(e)Sales or transfers from one coowner to one or more other coowners.
(f)Sales or transfers made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors.
(g)Sales or transfers between spouses resulting from a judgment of dissolution of marriage or of legal separation or from a property settlement agreement incidental to that judgment.
(h)Sales or transfers by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(i)Sales or transfers under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(j)Sales or transfers or exchanges to or from any governmental entity.
(k)Sales or transfers of any portion of a property not constituting single-family residential property with one to four dwelling units. property.
(l)Notwithstanding the definition of sale in Section 10018.5 of the Business and Professions Code and Section 2079.13, the terms sale and transfer, as they are used in this section, shall have their commonly understood meanings. The changes made to this section by Assembly Bill 1289 of the 201718 Legislative Session shall not be interpreted to change the application of the law as it read prior to January 1, 2019.
SEC. 9.SEC. 10.Section 1102.3 of the Civil Code is amended to read:1102.3.The seller of any single-family real property subject to this article shall deliver to the prospective buyer the completed written statement required by this article, as follows:
(a)In the case of a sale, as soon as practicable before transfer of title.
(b)In the case of sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(c)With respect to any sale subject to subdivision (a) or (b), the seller shall indicate compliance with this article on the real property sales contract, the lease, or any addendum attached thereto or on a separate document.
If any disclosure, or any material amendment of any disclosure, required to be made by this article, is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person, five days after delivery by deposit in the mail, or five days after delivery of an electronic record in transactions where the parties have agreed to conduct the transaction by electronic means, as described in Section 1633.5, pursuant to provisions of the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3), to terminate his or her offer by delivery of a written notice of termination to the seller or the sellers agent. The disclosure is complete period of time the prospective buyer has in which to terminate his or her offer commences when Sections I, II, and III in the form described in Section 1102.6 are completed and delivered. delivered to the buyer or buyers agent. A real estate agent may complete his or her portion of the required disclosure by providing all of the information on the agents inspection disclosure set forth in Section 1102.6.
SEC. 10.SEC. 11.Section 1102.4 of the Civil Code is amended to read:1102.4.(a)Neither the seller nor any listing sellers agent or buyers agent shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or that listing or buyers agent, was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting it.
(b)The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller or any listing or buyers agent of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, structural pest control operator, contractor, a C-39 roofing contractor conducting a roof inspection pursuant to subdivision (d) of Section 7197 of the Business and Professions Code, or other expert, dealing with matters within the scope of the professionals license or expertise, shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral. In responding to such a request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1102.6 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where such a statement is furnished, the expert shall not be responsible for any items of information or parts thereof, other than those expressly set forth in the statement.
SEC. 11.SEC. 12.Section 1102.5 of the Civil Code is amended to read:1102.5.If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any act, occurrence, or agreement subsequent to the delivery of the required disclosures, any inaccuracy resulting therefrom does not constitute a violation of this article. If at the time the disclosures are required to be made, an item of information required to be disclosed is unknown or not available to the seller, and the seller or his or her agent has made a reasonable effort to ascertain it, the seller may use an approximation of the information, provided the approximation is clearly identified as such, is reasonable, is based on the best information reasonably available to the seller or his or her agent, and is not used for the purpose of circumventing or evading this article.
SEC. 12.SEC. 13.Section 1102.6a of the Civil Code is amended to read:1102.6a.(a)On and after July 1, 1990, any city or county may elect to require disclosures on the form set forth in subdivision (b) in addition to those disclosures required by Section 1102.6. However, this section does not affect or limit the authority of a city or county to require disclosures on a different disclosure form in connection with transactions subject to this article pursuant to an ordinance adopted prior to July 1, 1990. An ordinance like this adopted prior to July 1, 1990, may be amended thereafter to revise the disclosure requirements of the ordinance, in the discretion of the city council or county board of supervisors.
(b)Disclosures required pursuant to this section pertaining to the property proposed to be sold, shall be set forth in, and shall be made on a copy of, the following disclosure form:
PRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE INSERTED(c)This section does not preclude the use of addenda to the form specified in subdivision (b) to facilitate the required disclosures. This section does not preclude a city or county from using the disclosure form specified in subdivision (b) for a purpose other than that specified in this section.
(d)(1)On and after January 1, 2005, if a city or county adopts a different or additional disclosure form pursuant to this section regarding the proximity or effects of an airport, the statement in that form shall contain, at a minimum, the information in the statement Notice of Airport in Vicinity found in Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255.
(2)On and after January 1, 2006, if a city or county does not adopt a different or additional disclosure form pursuant to this section, then the provision of an airport influence area disclosure pursuant to Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255, or if there is not a current airport influence map, a written disclosure of an airport within two statute miles, shall be deemed to satisfy any city or county requirements for the disclosure of airports in connection with sales of real property.
SEC. 13.SEC. 14.Section 1102.6b of the Civil Code is amended to read:1102.6b.(a)This section applies to all sales of real property for which all of the following apply:
(1)The sale is subject to this article.
(2)The property being sold is subject to a continuing lien securing the levy of special taxes pursuant to the Mello-Roos Community Facilities Act (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code), to a fixed lien assessment collected in installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or to a contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code.
(3)A notice is not required pursuant to Section 53341.5 of the Government Code.
(b)In addition to any other disclosure required pursuant to this article, the seller of any real property subject to this section shall make a good faith effort to obtain a disclosure notice concerning the special tax as provided for in Section 53340.2 of the Government Code, or a disclosure notice concerning an assessment installment as provided in Section 53754 of the Government Code, from each local agency that levies a special tax pursuant to the Mello-Roos Community Facilities Act, or that collects assessment installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or a disclosure notice concerning the contractual assessment as provided in Section 5898.24 of the Streets and Highways Code, on the property being sold, and shall deliver that notice or those notices to the prospective buyer, as long as the notices are made available by the local agency.
(c)(1)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) by delivering a disclosure notice that is substantially equivalent and obtained from another source until December 31, 2004.
(2)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the assessments collected under the contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code by delivering a disclosure notice that is substantially equivalent and obtained from another source.
(3)For the purposes of this section, a substantially equivalent disclosure notice includes, but is not limited to, a copy of the most recent years property tax bill or an itemization of current assessment amounts applicable to the property.
(d)(1)Notwithstanding subdivision (c), the seller of real property subject to this section may satisfy the disclosure notice requirements of this section by delivering a disclosure notice obtained from a nongovernmental source that satisfies the requirements of paragraph (2).
(2)A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe a special tax pursuant to the Mello-Roos Community Facilities Act levied against the property or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy a special tax pursuant to the Mello-Roos Community Facilities Act against the property, and shall include the name of the Mello-Roos entity levying taxes against the property, the annual tax due for the Mello-Roos entity for the current tax year, the maximum tax that may be levied against the property in any year, the percentage by which the maximum tax for the Mello-Roos entity may increase per year, and the date until the tax may be levied against the property for the Mello-Roos entity and a contact telephone number, if available, for further information about the Mello-Roos entity. A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe special assessments and bonds pursuant to the Improvement Bond Act of 1915 levied against the property, or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy special assessments and bonds pursuant to the Improvement Bond Act of 1915 against the property, and shall include the name of the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915, the current annual tax on the property for the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915 and a contact telephone number, if available, for further information about the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915.
(3)This section does not change the ability to make disclosures pursuant to Section 1102.4 of the Civil Code.
(e)If a disclosure received pursuant to subdivision (b), (c), or (d) has been delivered to the buyer, a seller or his or her agent is not required to provide additional information concerning, and information in the disclosure shall be deemed to satisfy the responsibility of the seller or his or her agent to inform the buyer regarding the special tax or assessment installments and the district. Notwithstanding subdivision (b), (c), or (d), nothing in this section imposes a duty to discover a special tax or assessment installments or the existence of any levying district not actually known to the agents.
SEC. 14.SEC. 15.Section 1102.6c of the Civil Code is amended to read:1102.6c.(a)In addition to any other disclosure required pursuant to this article, it shall be the sole responsibility of the seller of any real property subject to this article, or his or her agent, to deliver to the prospective buyer a disclosure notice that includes both of the following:
(1)A notice, in at least 12-point type or a contrasting color, as follows:
California property tax law requires the Assessor to revalue real property at the time the ownership of the property changes. Because of this law, you may receive one or two supplemental tax bills, depending on when your loan closes.
The supplemental tax bills are not mailed to your lender. If you have arranged for your property tax payments to be paid through an impound account, the supplemental tax bills will not be paid by your lender. It is your responsibility to pay these supplemental bills directly to the tax collector. If you have any question concerning this matter, please call your local tax collectors office.
(2)A title, in at least 14-point type or a contrasting color, that reads as follows: Notice of Your Supplemental Property Tax Bill.
(b)The disclosure notice requirements of this section may be satisfied by delivering a disclosure notice pursuant to Section 1102.6b that satisfies the requirements of subdivision (a).
SEC. 15.SEC. 16.Section 1102.9 of the Civil Code is amended to read:1102.9.Any disclosure made pursuant to this article may be amended in writing by the seller or his or her agent, but the amendment shall be subject to Section 1102.3 or 1102.3a.
SEC. 16.Section 1102.12 of the Civil Code is amended to read:1102.12.(a)In a real estate transaction subject to this article, a buyers agent or a dual agent shall, except as otherwise provided in this article, deliver the disclosure required by this article to the buyer, unless the seller has given other written instructions for delivery. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.(b)If a real estate broker responsible for delivering the disclosures under this section cannot obtain the disclosure document required and does not have written assurance from the buyer that the disclosure has been received, the broker shall advise the buyer in writing of his or her rights to the disclosure. A real estate broker responsible for delivering disclosures under this section shall maintain a record of the action taken to effect compliance in accordance with Section 10148 of the Business and Professions Code.SEC. 17.Section 1102.14 of the Civil Code is repealed.SEC. 18.Section 1102.155 of the Civil Code is amended to read:1102.155.(a)(1)The seller of single-family residential real property subject to this article shall disclose, in writing, that Section 1101.4 requires that California single-family residences be equipped with water-conserving plumbing fixtures on or before after January 1, 2017, and shall disclose whether the property includes any noncompliant plumbing fixtures as defined in subdivision (c) of Section 1101.3.
(2)The seller shall affirm that this representation is that of the seller and not a representation of any agent, and that this disclosure is not intended to be part of any contract between the buyer and the seller. The seller shall further affirm that this disclosure is not a warranty of any kind by the seller or any agent representing any principal in the transaction and is not a substitute for any inspections or warranties that any principal may wish to obtain.
(b)This section shall become operative on January 1, 2017.
SEC. 19.Section 1102.18 is added to the Civil Code, to read:1102.18.Nothing in Assembly Bill 1289 of the 20172018 Regular Session or in Assembly Bill 2884 of the 201718 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciarys responsibilities and obligations to disclose information relative to a real estate transaction pursuant to Article 6 (commencing with Section 1086) of Chapter 1, Article 1.5 (commencing with Section 1102), or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3.SEC. 19.Section 1102.18 is added to the Civil Code, to read:1102.18.The provisions of subdivision (d) of Section 1102.1 shall apply to this article.
SEC. 20.Section 1103 of the Civil Code is amended to read:1103.(a)For purpose of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(b)Except as provided in Section 1103.1, this article applies to a sale, exchange, real property sales contract, as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any single-family residential real property described in subdivision (d), or residential stock cooperative, improved with or consisting of not less than one nor more than four dwelling units. property.
(c)Except as provided in Section 1103.1, this article applies to a resale transaction entered into on or after January 1, 2000, for a manufactured home, as defined in Section 18007 of the Health and Safety Code, that is classified as personal property intended for use as a residence, or a mobilehome, as defined in Section 18008 of the Health and Safety Code, that is classified as personal property intended for use as a residence, if the real property on which the manufactured home or mobilehome is located is real property described in subdivision (d).(d)(c)This article shall apply to the transactions described in subdivisions subdivision (b) and (c) only if the seller or his or her agent is required by one or more of the following to disclose the propertys location within a hazard zone:
(1)A person who is acting as a real estate sellers agent for a seller of real property that is located within a special flood hazard area (any type Zone A or V) designated by the Federal Emergency Management Agency, or the seller if the seller is acting without a real estate sellers agent, shall disclose to any prospective buyer the fact that the property is located within a special flood hazard area if either:
(A)The seller, or the sellers real estate agent, has actual knowledge that the property is within a special flood hazard area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the special flood hazard area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(2)A person who is acting as an sellers agent for a seller of real property that is located within an area of potential flooding designated pursuant to Section 8589.5 of the Government 6161 of the Water Code, or the seller if the seller is acting without an a sellers agent, shall disclose to any prospective buyer the fact that the property is located within an area of potential flooding if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within an inundation area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the inundation area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(3)A seller of real property that is located within a very high fire hazard severity zone, designated pursuant to Section 51178 of the Government Code, or the sellers agent, shall disclose to any prospective buyer the fact that the property is located within a very high fire hazard severity zone and is subject to the requirements of Section 51182 of the Government Code if either:
(A)The seller or the sellers agent, has actual knowledge that the property is within a very high fire hazard severity zone.
(B)A map that includes the property has been provided to the local agency pursuant to Section 51178 of the Government Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the local agency.
(4)A person who is acting as an sellers agent for a seller of real property that is located within an earthquake fault zone, designated pursuant to Section 2622 of the Public Resources Code, or the seller seller, if the seller is acting without an agent, shall disclose to any prospective buyer the fact that the property is located within a delineated earthquake fault zone if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a delineated earthquake fault zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2622 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(5)A person who is acting as an sellers agent for a seller of real property that is located within a seismic hazard zone, designated pursuant to Section 2696 of the Public Resources Code, or the seller if the seller is acting without an agent, shall disclose to any prospective buyer the fact that the property is located within a seismic hazard zone if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a seismic hazard zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2696 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(6)A seller of real property that is located within a state responsibility area determined by the board, pursuant to Section 4125 of the Public Resources Code, or the sellers agent, shall disclose to any prospective buyer the fact that the property is located within a wildland area that may contain substantial forest fire risks and hazards and is subject to the requirements of Section 4291 of the Public Resources Code if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a wildland fire zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 4125 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(e)(d)Any waiver of the requirements of this article is void as against public policy.
SEC. 21.Section 1103.1 of the Civil Code is amended to read:1103.1.(a)This article does not apply to the following sales:
(1)Sales or transfers pursuant to court order, including, but not limited to, sales ordered by a probate court in administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, sales by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.
(2)Sales or transfers to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, transfers by any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, or sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure.
(3)Sales or transfers by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and the seller is a former owner of the property or an occupant in possession of the property within the preceding year.
(4)Sales or transfers from one coowner to one or more other coowners.
(5)Sales or transfers made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the sellers.
(6)Sales or transfers between spouses resulting from a judgment of dissolution of marriage or of legal separation of the parties or from a property settlement agreement incidental to that judgment.
(7)Sales or transfers by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(8)Sales or transfers under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(9)Sales Sales, transfers, or exchanges to or from any governmental entity.
(b)Sales and transfers not subject to this article may be subject to other disclosure requirements, including those under Sections 8589.3, 8589.4, and 51183.5 of the Government Code and Sections 2621.9, 2694, and 4136 of the Public Resources Code. In sales not subject to this article, agents may make required disclosures in a separate writing.
(c)Notwithstanding the definition of sale in Section 10018.5 of the Business and Professions Code and Section 2079.13, the terms sale and transfer, as they are used in this section, shall have their commonly understood meanings. The changes made to this section by Assembly Bill 1289 of the 201718 Legislative Session shall not be interpreted to change the application of the law as it read prior to January 1, 2019.
SEC. 22.Section 1103.2 of the Civil Code is amended to read:1103.2.(a)The disclosures required by this article are set forth in, and shall be made on a copy of, the following Natural Hazard Disclosure Statement:
NATURAL HAZARD DISCLOSURE STATEMENT | |
This statement applies to the following property: | |
The seller and the sellers agent(s) or a third-party consultant disclose the following information with the knowledge that even though this is not a warranty, prospective buyers may rely on this information in deciding whether and on what terms to purchase the subject property. Seller hereby authorizes any agent(s) representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. | |
The following are representations made by the seller and the sellers agent(s) based on their knowledge and maps drawn by the state and federal governments. This information is a disclosure and is not intended to be part of any contract between the seller and buyer. | |
THIS REAL PROPERTY LIES WITHIN THE FOLLOWING | |
A SPECIAL FLOOD HAZARD AREA (Any type Zone A or V) designated by the Federal Emergency Management Agency. | |
Yes____ No ____Do not know and | |
AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code. | |
Yes____ No ____Do not know and | |
A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. | |
Yes____ No ____ | |
A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the states responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. | |
Yes____ No____ | |
AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. | |
Yes____ No____ | |
A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public | |
Yes (Landslide Zone)____________Yes (Liquefaction Zone) ______ No____Map not yet released by state ____ | |
THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER. | |
THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER. SELLER(S) AND BUYER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. | |
Signature of Seller(s) | Date |
Signature of Seller(s) | Date |
Sellers Agent(s) | Date |
Sellers Agent(s) | Date |
Check only one of the following: | |
Seller(s) and their agent(s) represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s) and agent(s). | |
Seller(s) and their agent(s) acknowledge that they have exercised good faith in the selection of a third-party report provider as required in Section 1103.7 of the Civil Code, and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the independent third-party disclosure provider as a substituted disclosure pursuant to Section 1103.4 of the Civil Code. Neither seller(s) nor their agent(s) (1) has independently verified the information contained in this statement and report or (2) is personally aware of any errors or inaccuracies in the information contained on the statement. This statement was prepared by the provider below: | |
Third-Party Disclosure Provider(s) | Date |
Buyer represents that he or she has read and understands this document. Pursuant to Civil Code Section 1103.8, the representations made in this Natural Hazard Disclosure Statement do not constitute all of the sellers or agents disclosure obligations in this transaction. | |
Signature of Buyer(s) | Date |
Signature of Buyer(s) | Date |
(b)If an earthquake fault zone, seismic hazard zone, very high fire hazard severity zone, or wildland fire area map or accompanying information is not of sufficient accuracy or scale that a reasonable person can determine if the subject real property is included in a natural hazard area, the seller or sellers agent shall mark Yes on the Natural Hazard Disclosure Statement. The sellers agent may mark No on the Natural Hazard Disclosure Statement if the seller attaches a report prepared pursuant to subdivision (c) of Section 1103.4 that verifies the property is not in the hazard zone. Nothing in this subdivision is intended to limit or abridge any existing duty of the seller or the sellers agent to exercise reasonable care in making a determination under this subdivision.
(c)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is no longer within a special flood hazard area, then the seller or sellers agent may mark No on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or sellers agent shall attach a copy of the Letter of Map Revision to the disclosure statement.
(d)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is within a special flood hazard area and the location of the letter has been posted pursuant to subdivision (g) of Section 8589.3 of the Government Code, then the seller or sellers agent shall mark Yes on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or sellers agent shall attach a copy of the Letter of Map Revision to the disclosure statement.
(e)The disclosure required pursuant to this article may be provided by the seller and the sellers agent in the Local Option Real Estate Disclosure Statement described in Section 1102.6a, provided that the Local Option Real Estate Disclosure Statement includes substantially the same information and substantially the same warnings that are required by this section.
(f)(1)The legal effect of a consultants report delivered to satisfy the exemption provided by Section 1103.4 is not changed when it is accompanied by a Natural Hazard Disclosure Statement.
(2)A consultants report shall always be accompanied by a completed and signed Natural Hazard Disclosure Statement.
(3)In a disclosure statement required by this section, an agent and third-party provider may cause his or her name to be preprinted in lieu of an original signature in the portions of the form reserved for signatures. The use of a preprinted name shall not change the legal effect of the acknowledgment.
(g)The disclosure required by this article is only a disclosure between the seller, the sellers agents, agent, and the prospective buyer, and shall not be used by any other party, including, but not limited to, insurance companies, lenders, or governmental agencies, for any purpose.
(h)In any transaction in which a seller has accepted, prior to June 1, 1998, an offer to purchase, the seller, or his or her agent shall be deemed to have complied with the requirement of subdivision (a) if the seller or agent delivers to the prospective buyer a statement that includes substantially the same information and warning as the Natural Hazard Disclosure Statement.
SEC. 23.Section 1103.3 of the Civil Code is amended to read:1103.3.(a)The seller of any real property subject to this article shall deliver to the prospective buyer the written statement required by this article, as follows:
(1)In the case of a sale, as soon as practicable before transfer of title.
(2)In the case of a sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before the prospective buyers execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(b)The seller shall indicate compliance with this article either on the real property sales contract, the lease, any addendum attached thereto, or on a separate document.
(c)If any disclosure, or any material amendment of any disclosure, required to be made pursuant to this article is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person, five days after delivery by deposit in the mail, or five days after delivery of an electronic record in transactions where the parties have agreed to conduct the transaction by electronic means, as described in Section 1633.5, pursuant to provisions of the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3), to terminate his or her offer by delivery of a written notice of termination to the seller or the sellers agent.
SEC. 24.Section 1103.4 of the Civil Code is amended to read:1103.4.(a)Neither the seller nor any listing sellers agent or buyers agent shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or the listing sellers agent or selling buyers agent and was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting the information.
(b)The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller, listing sellers agent, and buyers agent of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, or expert in natural hazard discovery dealing with matters within the scope of the professionals license or expertise shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral. In responding to that request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1103.2 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where such a statement is furnished, the expert shall not be responsible for any items of information or parts thereof, other than those expressly set forth in the statement.
(1)In responding to the request, the expert shall determine whether the property is within an airport influence area as defined in subdivision (b) of Section 11010 of the Business and Professions Code. If the property is within an airport influence area, the report shall contain the following statement:
NOTICE OF AIRPORT IN VICINITY | |
This property is presently located in the vicinity of an |
(2)In responding to the request, the expert shall determine whether the property is within the jurisdiction of the San Francisco Bay Conservation and Development Commission, as defined in Section
66620 of the Government Code. If the property is within the commissions jurisdiction, the report shall contain the following notice:
NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION JURISDICTION
This property is located within the jurisdiction of the San Francisco Bay Conservation and Development Commission. Use and development of property within the commissions jurisdiction may be subject to special regulations, restrictions, and permit requirements. You may wish to investigate and determine whether they are acceptable to you and your intended use of the property before you complete your transaction.
(3)In responding to the request, the expert shall determine whether the property is presently located within one mile of a parcel of real property designated
as Prime Farmland, Farmland of Statewide Importance, Unique Farmland, Farmland of Local Importance, or Grazing Land on the most current Important Farmland Map issued by the California Department of Conservation, Division of Land Resource Protection, utilizing solely the county-level GIS map data, if any, available on the Farmland Mapping and Monitoring Program Web site. If the residential property is within one mile of a designated farmland area, the report shall contain the following notice:
NOTICE OF RIGHT TO FARM
This property is located within one mile of a farm or ranch land designated on the current county-level GIS Important Farmland Map, issued by the California Department of Conservation, Division of Land Resource Protection. Accordingly, the property may be subject to
inconveniences or discomforts resulting from agricultural operations that are a normal and necessary aspect of living in a community with a strong rural character and a healthy agricultural sector. Customary agricultural practices in farm operations may include, but are not limited to, noise, odors, dust, light, insects, the operation of pumps and machinery, the storage and disposal of manure, bee pollination, and the ground or aerial application of fertilizers, pesticides, and herbicides. These agricultural practices may occur at any time during the 24-hour day. Individual sensitivities to those practices can vary from person to person. You may wish to consider the impacts of such agricultural practices before you complete your purchase. Please be advised that you may be barred from obtaining legal remedies against agricultural practices conducted in a manner consistent with proper and accepted
customs and standards pursuant to Section 3482.5 of the Civil Code or any pertinent local ordinance.
(4)In responding to the request, the expert shall determine, utilizing map coordinate data made available by the Office of Mine Reclamation, whether the property is presently located within one mile of a mine operation for which map coordinate data has been reported to the director pursuant to Section 2207 of the Public Resources Code. If the expert determines, from the available map coordinate data, that the residential property is located within one mile of a mine operation, the report shall contain the following notice:
NOTICE OF MINING OPERATIONS:
This property is located within one mile of a mine operation for which the mine owner or operator has reported mine location data to the Department of Conservation pursuant to Section 2207 of the Public Resources Code. Accordingly, the property may be subject to inconveniences resulting from mining operations. You may wish to consider the impacts of these practices before you complete your transaction.
SEC. 25.Section 1103.5 of the Civil Code is amended to read:1103.5.(a)After a seller and his or her agent comply with Section 1103.2, they shall be relieved of further duty under this article with respect to those items of information. The seller and the sellers agent shall not be required to provide notice to the prospective buyer if the information provided subsequently becomes inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence, unless the seller or agent has actual knowledge that the information has become inaccurate.
(b)If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence subsequent to the delivery of the required disclosures, the inaccuracy resulting therefrom does not constitute a violation of this article.
SEC. 26.Section 1103.8 of the Civil Code is amended to read:1103.8.(a)The specification of items for disclosure in this article does not limit or abridge any obligation for disclosure created by any other provision of law or that may exist in order to avoid fraud, misrepresentation, or deceit in the sale transaction. The Legislature does not intend to affect the existing obligations of the parties to a real estate contract, or their agents, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical condition of the property and previously received reports of physical inspection noted on the disclosure form provided pursuant to Section 1102.6 or 1102.6a.
(b)Nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079.
SEC. 27.Section 1103.9 of the Civil Code is amended to read:1103.9.Any disclosure made pursuant to this article may be amended in writing by the seller or the sellers agent, but the amendment shall be subject to Section 1103.3.
SEC. 28.Section 1103.12 of the Civil Code is amended to read:1103.12.(a)In a real estate transaction subject to this article, a buyers broker or a dual broker shall, except as otherwise provided in this article, deliver the disclosure required by this article to the buyer, unless the seller has given other written instructions for delivery. If there is only one real estate broker in a transaction subject to this article, that real estate broker shall deliver the disclosure required by this article to the buyer. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.(b)If a licensed real estate broker responsible for delivering the disclosures under this section cannot obtain the disclosure document required and does not have written assurance from the buyer that the disclosure has been received, the broker shall advise the buyer in writing of the buyers rights to the disclosure. A licensed real estate broker responsible for delivering disclosures under this section shall maintain a record of the action taken to effect compliance in accordance with Section 10148 of the Business and Professions Code.SEC. 29.SEC. 28.Section 1103.14 of the Civil Code is repealed.SEC. 30.Section 1103.15 is added to the Civil Code, to read:1103.15.Nothing in Assembly Bill 1289 of the 20172018 Regular Session or in Assembly Bill 2884 of the 201718 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciarys responsibilities and obligations to disclose information relative to a real estate transaction pursuant to Article 6 (commencing with Section 1086) of Chapter 1, Article 1.5 (commencing with Section 1102), or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3.SEC. 29.Section 1103.15 is added to the Civil Code, to read:1103.15.The provisions of subdivision (d) of Section 1102.1 shall apply to this article.
SEC. 31.SEC. 30.Section 2079 of the Civil Code is amended to read:2079.(a)It is the duty of a real estate broker or salesperson, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to a prospective buyer of single-family residential real property comprising one to four dwelling units, or a manufactured home as defined in Section 18007 of the Health and Safety Code, to conduct a reasonably competent and diligent visual inspection of the property offered for sale and to disclose to that prospective buyer all facts materially affecting the value or desirability of the property that an investigation would reveal, if that broker has a written contract with the seller to find or obtain a buyer or is a broker who acts in cooperation with that broker to find and obtain a buyer.
(b)It is the duty of a real estate broker or salesperson, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to comply with this section and any regulations imposing standards of professional conduct adopted pursuant to Section 10080 of the Business and Professions Code with reference to Sections 10176 and 10177 of the Business and Professions Code.
SEC. 32.SEC. 31.Section 2079.6 of the Civil Code is amended to read:2079.6.This article does not apply to sales which are required to be preceded by the furnishing, to a prospective buyer, of a copy of a public report pursuant to Section 11018.1 or Section 11234 of the Business and Professions Code and sales that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code, unless the property has been previously occupied.
SEC. 33.SEC. 32.Section 2079.7 of the Civil Code is amended to read:2079.7.(a)If a consumer information booklet described in Section 10084.1 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 of the Civil Code, or manufactured housing, as defined in Section 18007 of the Health and Safety Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, common environmental hazards, as described in the booklet, that can affect real property.
(b)Notwithstanding subdivision (a), nothing in this section either increases or decreases the duties, if any, of sellers or brokers, including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or Section 25359.7 of the Health and Safety Code, or alters the duty of a seller or broker to disclose the existence of known environmental hazards on or affecting the real property.
SEC. 34.SEC. 33.Section 2079.8 of the Civil Code is amended to read:2079.8.(a)If a Homeowners Guide to Earthquake Safety described in Section 10149 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers or brokers, including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, or alters the duty of a seller or broker to disclose the existence of known hazards on or affecting the real property.
SEC. 35.SEC. 34.Section 2079.9 of the Civil Code is amended to read:2079.9.(a)If a Commercial Property Owners Guide to Earthquake Safety described in Section 10147 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers, their real estate brokers or agents under this article or under Chapter 7.5 (commencing with Section 2621) or Chapter 7.8 (commencing with Section 2690) of Division 2 of the Public Resources Code, or alters the duty of a seller, agent, or broker to disclose the existence of known hazards on or affecting the real property.
SEC. 36.SEC. 35.Section 2079.10 of the Civil Code is amended to read:2079.10.(a)If the informational booklet published pursuant to Section 25402.9 of the Public Resources Code, concerning the statewide home energy rating program adopted pursuant to Section 25942 of the Public Resources Code, is delivered to a buyer in connection with the sale of real property, including, but not limited to, property specified in Section 1102, manufactured homes as defined in Section 18007 of the Health and Safety Code, and property subject to Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, the seller or broker is not required to provide information additional to that contained in the booklet concerning home energy ratings, and the information in the booklet shall be deemed to be adequate to inform the buyer about the existence of a statewide home energy rating program.
(b)Notwithstanding subdivision (a), nothing in this section alters any existing duty of the seller or broker under any other law including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, or Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, to disclose information concerning the existence of a home energy rating program affecting the real property.
(c)If the informational booklet or materials described in Section 375.5 of the Water Code concerning water conservation and water conservation programs are delivered to a buyer in connection with the sale of real property, including property described in subdivision (a), the seller or broker is not required to provide information concerning water conservation and water conservation programs that is additional to that contained in the booklet or materials, and the information in the booklet or materials shall be deemed to be adequate to inform the buyer about water conservation and water conservation programs.
SEC. 37.SEC. 36.Section 2079.10.5 of the Civil Code is amended to read:2079.10.5.(a)Every contract for the sale of single-family residential real property entered into on or after July 1, 2013, shall contain, in not less than 8-point type, a notice as specified below:
NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES
This notice is being provided simply to inform you that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via the National Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at http://www.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS Internet Web site.
(b)Upon delivery of the notice to the buyer of the real property, the seller or broker is not required to provide information in addition to that contained in the notice regarding gas and hazardous liquid transmission pipelines in subdivision (a). The information in the notice shall be deemed to be adequate to inform the buyer about the existence of a statewide database of the locations of gas and hazardous liquid transmission pipelines and information from the database regarding those locations.
(c)Nothing in this section shall alter any existing duty under any other statute or decisional law imposed upon the seller or broker, including, but not limited to, the duties of a seller or broker under this article, or the duties of a seller or broker under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 38.SEC. 37.Section 2079.10a of the Civil Code is amended to read:2079.10a.(a)Every lease or rental agreement for single-family residential real property entered into on or after July 1, 1999, any leasehold interest in real property consisting of multiunit residential property with more than four dwelling units entered into after that date, and every contract for the sale of residential real property comprised of one to four dwelling units entered into on or after that date, shall contain, in not less than 8-point type, a notice as specified in paragraph (1), (2), or (3).
(1)A contract entered into by the parties on or after July 1, 1999, and before September 1, 2005, shall contain the following notice:
Notice: The California Department of Justice, sheriffs departments, police departments serving jurisdictions of 200,000 or more, and many other local law enforcement authorities maintain for public access a database of the locations of persons required to register pursuant to subdivision (a) of Section 290.4 of the Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice also maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a 900 telephone service. Callers shall have specific information about individuals they are checking. Information regarding neighborhoods is not available through the 900 telephone service.
(2)A contract entered into by the parties on or after September 1, 2005, and before April 1, 2006, shall contain either the notice specified in paragraph (1) or the notice specified in paragraph (3).
(3)A contract entered into by the parties on or after April 1, 2006, shall contain the following notice:
Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offenders criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which the offender resides.
(b)Subject to subdivision (c), upon delivery of the notice to the lessee or buyer of the real property, the lessor, seller, or broker is not required to provide information in addition to that contained in the notice regarding the proximity of registered sex offenders. The information in the notice shall be deemed to be adequate to inform the lessee or buyer about the existence of a statewide database of the locations of registered sex offenders and information from the database regarding those locations. The information in the notice shall not give rise to any cause of action against the disclosing party by a registered sex offender.
(c)Notwithstanding subdivisions (a) and (b), nothing in this section shall alter any existing duty of the lessor, seller, or broker under any other statute or decisional law including, but not limited to, the duties of a lessor, seller, or broker under this article, or the duties of a seller or broker under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 39.SEC. 38.Section 2079.13 of the Civil Code is amended to read:2079.13.As used in Sections 2079.7 and 2079.14 to 2079.24, inclusive, the following terms have the following meanings:
(a)Agent means a person acting under provisions of Title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained.
(b)Associate licensee means a person who is licensed as a real estate broker or salesperson under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code and who is either licensed under a broker or has entered into a written contract with a broker to act as the brokers agent in connection with acts requiring a real estate license and to function under the brokers supervision in the capacity of an associate licensee.The agent in the real property transaction bears responsibility for that agents associate licensees salespersons or broker associates who perform as agents of the agent. When an associate licensee a salesperson or broker associate owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by the broker for whom the associate licensee salesperson or broker associate functions.
(c)(b)Buyer means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. Buyer includes vendee or lessee of real property.
(d)(c)Commercial real property means all real property in the state, except (1) single-family residential real property, (2) dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, mobilehomes, (3) a mobilehome, as defined in Section 798.3, (4) vacant land, or (5) a recreational vehicles, vehicle, as defined in Section 799.29.
(e)(d)Dual agent means an agent acting, either directly or through an associate licensee, a salesperson or broker associate, as agent for both the seller and the buyer in a real property transaction.
(f)(e)Listing agreement means a written contract between an owner a seller of real property and an agent, by which the agent has been authorized to sell the real property or to find or obtain a buyer. buyer, including rendering other services for which a real estate license is required to the seller pursuant to the terms of the agreement.
(g)Listing(f)Sellers agent means a person who has obtained a listing of real property to act as an agent for compensation.
(h)(g)Listing price is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the listing sellers agent.
(i)(h)Offering price is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property.
(j)(i)Offer to purchase means a written contract executed by a buyer acting through a selling buyers agent that becomes the contract for the sale of the real property upon acceptance by the seller.
(k)(j)Real property means any estate specified by subdivision (1) or (2) of Section 761 in property that constitutes or is improved with one to four dwelling units, any commercial real property, any leasehold in these types of property exceeding one years duration, and mobilehomes, property, and includes (1) single-family residential property, (2) multiunit residential property with more than four dwelling units, (3) commercial real property, (4) vacant land, (5) a ground lease coupled with improvements, or (6) a manufactured home as defined in Section 18007 of the Health and Safety Code, or a mobilehome as defined in Section 18008 of the Health and Safety Code, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code.
(l)(k)Real property transaction means a transaction for the sale of real property in which an agent is employed retained by one or more of the principals a buyer, seller, or both a buyer and seller to act in that transaction, and includes a listing or an offer to purchase.
(m)(l)Sell, sale, or sold refers to a transaction for the transfer of real property from the seller to the buyer and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one years duration.
(n)(m)Seller means the transferor in a real property transaction and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which the person he or she is the owner from an agent on behalf of another. Seller includes both a vendor and a lessor of real property.
(o)Selling agent and buyers(n)Buyers agent mean means an agent who represents a buyer in a real property transaction.
SEC. 40.SEC. 39.Section 2079.14 of the Civil Code is amended to read:2079.14.Listing agents A sellers agent and buyers agents agent shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and shall obtain a signed acknowledgment of receipt from that seller or and buyer, except as provided in Section 2079.15, as follows:
(a)The listing sellers agent, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement.
(b)The buyers agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyers offer to purchase. If the offer to purchase is not prepared by the buyers agent, the buyers agent shall present the disclosure form to the buyer not later than the next business day after receiving the offer to purchase from the buyer.
SEC. 41.SEC. 40.Section 2079.15 of the Civil Code is amended to read:2079.15.In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the real estate agent shall set forth, sign, and date a written declaration of the facts of the refusal.
SEC. 42.SEC. 41.Section 2079.16 of the Civil Code is amended to read:2079.16.The disclosure form required by Section 2079.14 shall have Sections 2079.13 to 2079.24, inclusive, excluding this section, printed on the back, and on the front of the disclosure form the following shall appear:
DISCLOSURE REGARDING
REAL ESTATE AGENCY RELATIONSHIP
(As required by the Civil Code)
When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction.
SELLERS AGENT
A Sellers agent under a listing agreement with the Seller acts as the agent for the Seller only. A Sellers agent or a subagent of that agent has the following affirmative obligations:
To the Seller:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Seller.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the agents duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.
An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.
BUYERS AGENT
A selling Buyers agent can, with a Buyers consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Sellers agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations:
To the
Buyer:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Buyer.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the agents duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.
AGENT REPRESENTING BOTH SELLER AND BUYER
A real estate agent, either acting directly or through one or more associate licensees, salespersons and broker associates, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.
In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer:
(a)A fiduciary duty of utmost care, integrity, honesty, and loyalty in the dealings with either the Seller or the Buyer.
(b)Other duties to the Seller and the Buyer as stated above in their respective sections.
In representing both Seller and Buyer, a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the Buyers or Sellers financial position, motivations, bargaining position, or other personal information that may impact price, including the Sellers willingness to accept a price less than the listing price or the Buyers willingness to pay a price greater than the price offered.
SELLER AND BUYER RESPONSIBILITIES
Either the purchase agreement or a separate document will contain a confirmation of which agent is representing you and if whether that agent is representing you exclusively in the transaction or acting as a dual agent. Please pay attention to that confirmation to make sure it accurately reflects your understanding of your agents role.
The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.
If you are a Buyer, you have the duty to exercise reasonable care to protect yourself, including as to those facts about the property which are known to you or within your diligent attention and observation.
Both Sellers and Buyers should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change.
Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction.
This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on the reverse hereof. Read it carefully.
Agent(date) | Buyer/Seller(date) |
(Signature) | |
Associate Licensee Salesperson or Broker Associate, if any(date) | Buyer/Seller(date) |
(Signature) | (Signature) |
(a)As soon as practicable, the buyers agent shall disclose to the buyer and seller whether the agent is acting in the real property transaction as the buyers agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the buyers agent prior to or coincident with execution of that contract by the buyer and the seller, respectively.
(b)As soon as practicable, the sellers agent shall disclose to the seller whether the sellers agent is acting in the real property transaction as the sellers agent, or as a dual agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the sellers agent prior to or coincident with the execution of that contract by the seller.
(c)The confirmation required by subdivisions (a) and (b) shall be in the following form:
(Name of Sellers Broker, Agent, Brokerage firm and license number) is the broker of (check one): | |
[]the seller; or | |
[]both the buyer and seller. (dual broker) agent) | |
(Name of Sellers Agent and license number) is (check one): | |
[]is the Sellers Agent. (salesperson or broker associate) | |
[]is both the Buyers and Sellers Agent. (dual agent) | |
(Name of Buyers Broker, Agent, Brokerage firm and license number) is the broker of (check one): | |
[]the buyer; or | |
[]both the buyer and seller. (dual broker) agent) | |
(Name of Buyers Agent and license number) is (check one): | |
[]the Buyers Agent. (salesperson or broker associate) | |
[]both the Buyers and Sellers Agent. (dual agent) |
(d)The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. An agents duty to provide disclosure and confirmation of representation in this section may be performed by a real estate salesperson or broker associate affiliated with that broker.
SEC. 44.SEC. 43.Section 2079.18 of the Civil Code is repealed.SEC. 45.SEC. 44.Section 2079.21 of the Civil Code is amended to read:2079.21.(a)A dual agent may not, without the express permission of the seller, disclose to the buyer any confidential information obtained from the seller.
(b)A dual agent may not, without the express permission of the buyer, disclose to the seller any confidential information obtained from the buyer.
(c)Confidential information means facts relating to the clients financial position, motivations, bargaining position, or other personal information that may impact price, such as the seller is willing to accept a price less than the listing price or the buyer is willing to pay a price greater than the price offered.
(d)This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price.
SEC. 46.SEC. 45.Section 2079.22 of the Civil Code is amended to read:2079.22.Nothing in this article precludes a sellers agent from also being a buyers agent. If a seller or buyer in a transaction chooses to not be represented by an agent, that does not, of itself, make that agent a dual agent.
SEC. 47.Section 2079.25 is added to the Civil Code, to read:2079.25.Nothing in Assembly Bill 1289 of the 20172018 Regular Session or in Assembly Bill 2884 of the 201718 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciarys responsibilities and obligations to disclose information relative to a real estate transaction pursuant to Article 6 (commencing with Section 1086) of Chapter 1 of Title 4 of Part 4 of Division 2 of, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of, or Article 2 (commencing with Section 2079).SEC. 46.Section 2079.25 is added to the Civil Code, to read:2079.25.The provisions of subdivision (d) of Section 1102.1 shall apply to this article.
SEC. 48.SEC. 47.This act shall not become operative unless Assembly Bill 2884 of the 201718 Regular Session, relating to real estate, is enacted and becomes effective on January 1, 2019.
(a)For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code apply.
(b)Agent means a person acting under provisions of Title 9 (commencing with Section 2295) of Part 4 of Division 3 in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained.(b)An agent is one authorized by law to act in that capacity for that type of property and is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, or is a licensee, as defined in Section 18006 of the Health and Safety Code.
SEC. 2.Section 1087 of the Civil Code is amended to read:1087.A multiple listing service (MLS) is a facility of cooperation of agents and appraisers, operating through an intermediary that does not itself act as an agent or appraiser, through which agents establish express or implied contracts for compensation between real estate brokers that are MLS participants in accordance with its MLS rules with respect to listed properties in a listing agreement, or that may be used by agents and appraisers, pursuant to the rules of the service, to prepare market evaluations and appraisals of real property.
SEC. 3.Section 1088 of the Civil Code is amended to read:1088.A listing may not be placed in a multiple listing service unless authorized or directed by the seller in the listing.
If an agent or appraiser places a listing or other information in the multiple listing service, that agent or appraiser shall be responsible for the truth of all representations and statements made by the agent or appraiser of which that agent or appraiser had knowledge or reasonably should have had knowledge to anyone injured by their falseness or inaccuracy.
SEC. 4.Section 1089 of the Civil Code is repealed.SEC. 5.Section 1090 of the Civil Code is amended to read:1090.Nothing in this article shall preclude a listing agent from also being the buyers agent.
SEC. 6.Section 1090.1 is added to the Civil Code, to read:1090.1.Nothing in Assembly Bill 1289 of the 20172018 Regular Session or in Assembly Bill 2884 of the 201718 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciarys responsibilities and obligations to disclose information relative to a real estate transaction pursuant to this article, Article 1.5 (commencing with Section 1102) of Chapter 2, or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3.
SEC. 6. SEC. 7.Section 1102 of the Civil Code is amended to read:1102.(a)Except as provided in Section 1102.2, this article applies to any sale of residential property.
(b)For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(c)Any waiver of the requirements of this article is void as against public policy.
SEC. 7. SEC. 8.Section 1102.2 of the Civil Code is amended to read:1102.2.This article does not apply to the following:
(a)Sales that are required to be preceded by the furnishing to a prospective buyer of a copy of a public report pursuant to Section 11018.1 of the Business and Professions Code and transfers that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code.
(b)Sales pursuant to court order, including, but not limited to, sales ordered by a probate court in the administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, transfers by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.
(c)Sales to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure, sales to the legal owner or lienholder of a manufactured home or mobilehome by a registered owner or successor in interest who is in default, or sales by reason of any foreclosure of a security interest in a manufactured home or mobilehome.
(d)Sales by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and he or she is a former owner of the property or was an occupant in possession of the property within the preceding year.
(e)Sales from one coowner to one or more other coowners.
(f)Sales made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors.
(g)Sales between spouses resulting from a judgment of dissolution of marriage or of legal separation or from a property settlement agreement incidental to that judgment.
(h)Sales by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(i)Sales under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(j)Sales or exchanges to or from any governmental entity.
(k)Sales of any portion of a property not constituting residential property with one to four dwelling units.
SEC. 8. SEC. 9.Section 1102.3 of the Civil Code is amended to read:1102.3.The seller of any real property subject to this article shall deliver to the prospective buyer the completed written statement required by this article, as follows:
(a)In the case of a sale, as soon as practicable before transfer of title.
(b)In the case of sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(c)With respect to any sale subject to subdivision (a) or (b), the seller shall indicate compliance with this article on the real property sales contract, the lease, or any addendum attached thereto or on a separate document.
If any disclosure, or any material amendment of any disclosure, required to be made by this article, is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person, five days after delivery by deposit in the mail, or five days after delivery of an electronic record in transactions where the parties have agreed to conduct the transaction by electronic means, as described in Section 1633.5, to terminate his or her offer by delivery of a written notice of termination to the seller or the sellers agent. The disclosure is complete when Sections I, II II, and III in the form described in Section 1102.6 are completed and delivered. A real estate agent may complete his or her portion of the required disclosure by providing all of the information on the agents inspection disclosure set forth in Section 1102.6.
SEC. 9. SEC. 10.Section 1102.4 of the Civil Code is amended to read:1102.4.(a)Neither the seller nor any listing agent or buyers agent shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or that listing or buyers agent, was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting it.
(b)The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller or any listing or buyers agent of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, structural pest control operator, contractor, a C-39 roofing contractor conducting a roof inspection pursuant to subdivision (d) of Section 7197 of the Business and Professions Code, or other expert, dealing with matters within the scope of the professionals license or expertise, shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral. In responding to such a request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1102.6 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where such a statement is furnished, the expert shall not be responsible for any items of information or parts thereof, other than those expressly set forth in the statement.
SEC. 10. SEC. 11.Section 1102.5 of the Civil Code is amended to read:1102.5.If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any act, occurrence, or agreement subsequent to the delivery of the required disclosures, any inaccuracy resulting therefrom does not constitute a violation of this article. If at the time the disclosures are required to be made, an item of information required to be disclosed is unknown or not available to the seller, and the seller or his or her agent has made a reasonable effort to ascertain it, the seller may use an approximation of the information, provided the approximation is clearly identified as such, is reasonable, is based on the best information reasonably available to the seller or his or her agent, and is not used for the purpose of circumventing or evading this article.
SEC. 11. SEC. 12.Section 1102.6a of the Civil Code is amended to read:1102.6a.(a)On and after July 1, 1990, any city or county may elect to require disclosures on the form set forth in subdivision (b) in addition to those disclosures required by Section 1102.6. However, this section does not affect or limit the authority of a city or county to require disclosures on a different disclosure form in connection with transactions subject to this article pursuant to an ordinance adopted prior to July 1, 1990. An ordinance like this adopted prior to July 1, 1990, may be amended thereafter to revise the disclosure requirements of the ordinance, in the discretion of the city council or county board of supervisors.
(b)Disclosures required pursuant to this section pertaining to the property proposed to be sold, shall be set forth in, and shall be made on a copy of, the following disclosure form:
PRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE INSERTED(c)This section does not preclude the use of addenda to the form specified in subdivision (b) to facilitate the required disclosures. This section does not preclude a city or county from using the disclosure form specified in subdivision (b) for a purpose other than that specified in this section.
(d)(1)On and after January 1, 2005, if a city or county adopts a different or additional disclosure form pursuant to this section regarding the proximity or effects of an airport, the statement in that form shall contain, at a minimum, the information in the statement Notice of Airport in Vicinity found in Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255.
(2)On and after January 1, 2006, if a city or county does not adopt a different or additional disclosure form pursuant to this section, then the provision of an airport influence area disclosure pursuant to Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255, or if there is not a current airport influence map, a written disclosure of an airport within two statute miles, shall be deemed to satisfy any city or county requirements for the disclosure of airports in connection with sales of real property.
SEC. 12. SEC. 13.Section 1102.6b of the Civil Code is amended to read:1102.6b.(a)This section applies to all sales of real property for which all of the following apply:
(1)The sale is subject to this article.
(2)The property being sold is subject to a continuing lien securing the levy of special taxes pursuant to the Mello-Roos Community Facilities Act (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code), to a fixed lien assessment collected in installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or to a contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code.
(3)A notice is not required pursuant to Section 53341.5 of the Government Code.
(b)In addition to any other disclosure required pursuant to this article, the seller of any real property subject to this section shall make a good faith effort to obtain a disclosure notice concerning the special tax as provided for in Section 53340.2 of the Government Code, or a disclosure notice concerning an assessment installment as provided in Section 53754 of the Government Code, from each local agency that levies a special tax pursuant to the Mello-Roos Community Facilities Act, or that collects assessment installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or a disclosure notice concerning the contractual assessment as provided in Section 5898.24 of the Streets and Highways Code, on the property being sold, and shall deliver that notice or those notices to the prospective buyer, as long as the notices are made available by the local agency.
(c)(1)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) by delivering a disclosure notice that is substantially equivalent and obtained from another source until December 31, 2004.
(2)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the assessments collected under the contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code by delivering a disclosure notice that is substantially equivalent and obtained from another source.
(3)For the purposes of this section, a substantially equivalent disclosure notice includes, but is not limited to, a copy of the most recent years property tax bill or an itemization of current assessment amounts applicable to the property.
(d)(1)Notwithstanding subdivision (c), the seller of real property subject to this section may satisfy the disclosure notice requirements of this section by delivering a disclosure notice obtained from a nongovernmental source that satisfies the requirements of paragraph (2).
(2)A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe a special tax pursuant to the Mello-Roos Community Facilities Act levied against the property or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy a special tax pursuant to the Mello-Roos Community Facilities Act against the property, and shall include the name of the Mello-Roos entity levying taxes against the property, the annual tax due for the Mello-Roos entity for the current tax year, the maximum tax that may be levied against the property in any year, the percentage by which the maximum tax for the Mello-Roos entity may increase per year, and the date until the tax may be levied against the property for the Mello-Roos entity and a contact telephone number, if available, for further information about the Mello-Roos entity. A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe special assessments and bonds pursuant to the Improvement Bond Act of 1915 levied against the property, or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy special assessments and bonds pursuant to the Improvement Bond Act of 1915 against the property, and shall include the name of the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915, the current annual tax on the property for the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915 and a contact telephone number, if available, for further information about the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915.
(3)This section does not change the ability to make disclosures pursuant to Section 1102.4 of the Civil Code.
(e)If a disclosure received pursuant to subdivision (b), (c), or (d) has been delivered to the buyer, a seller or his or her agent is not required to provide additional information concerning, and information in the disclosure shall be deemed to satisfy the responsibility of the seller or his or her agent to inform the buyer regarding the special tax or assessment installments and the district. Notwithstanding subdivision (b), (c), or (d), nothing in this section imposes a duty to discover a special tax or assessment installments or the existence of any levying district not actually known to the agents.
SEC. 13. SEC. 14.Section 1102.6c of the Civil Code is amended to read:1102.6c.(a)In addition to any other disclosure required pursuant to this article, it shall be the sole responsibility of the seller of any real property subject to this article, or his or her agent, to deliver to the prospective buyer a disclosure notice that includes both of the following:
(1)A notice, in at least 12-point type or a contrasting color, as follows:
California property tax law requires the Assessor to revalue real property at the time the ownership of the property changes. Because of this law, you may receive one or two supplemental tax bills, depending on when your loan closes.
The supplemental tax bills are not mailed to your lender. If you have arranged for your property tax payments to be paid through an impound account, the supplemental tax bills will not be paid by your lender. It is your responsibility to pay these supplemental bills directly to the tax collector. If you have any question concerning this matter, please call your local tax collectors office.
(2)A title, in at least 14-point type or a contrasting color, that reads as follows: Notice of Your Supplemental Property Tax Bill.
(b)The disclosure notice requirements of this section may be satisfied by delivering a disclosure notice pursuant to Section 1102.6b that satisfies the requirements of subdivision (a).
SEC. 14. SEC. 15.Section 1102.9 of the Civil Code is amended to read:1102.9.Any disclosure made pursuant to this article may be amended in writing by the seller or his or her agent, but the amendment shall be subject to Section 1102.3 or 1102.3a.
SEC. 15. SEC. 16.Section 1102.12 of the Civil Code is amended to read:1102.12.(a)In a real estate transaction subject to this article, a buyers agent or a dual agent shall, except as otherwise provided in this article, deliver the disclosure required by this article to the buyer, unless the seller has given other written instructions for delivery. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.
(b)If a real estate broker responsible for delivering the disclosures under this section cannot obtain the disclosure document required and does not have written assurance from the buyer that the disclosure has been received, the broker shall advise the buyer in writing of his or her rights to the disclosure. A real estate broker responsible for delivering disclosures under this section shall maintain a record of the action taken to effect compliance in accordance with Section 10148 of the Business and Professions Code.
SEC. 16. SEC. 17.Section 1102.14 of the Civil Code is repealed.SEC. 17. SEC. 18.Section 1102.155 of the Civil Code is amended to read:1102.155.(a)(1)The seller of residential real property subject to this article shall disclose, in writing, that Section 1101.4 requires that California single-family residences be equipped with water-conserving plumbing fixtures on or before January 1, 2017, and shall disclose whether the property includes any noncompliant plumbing fixtures as defined in subdivision (c) of Section 1101.3.
(2)The seller shall affirm that this representation is that of the seller and not a representation of any agent, and that this disclosure is not intended to be part of any contract between the buyer and the seller. The seller shall further affirm that this disclosure is not a warranty of any kind by the seller or any agent representing any principal in the transaction and is not a substitute for any inspections or warranties that any principal may wish to obtain.
(b)This section shall become operative on January 1, 2017.
SEC. 19.Section 1102.18 is added to the Civil Code, to read:1102.18.Nothing in Assembly Bill 1289 of the 20172018 Regular Session or in Assembly Bill 2884 of the 201718 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciarys responsibilities and obligations to disclose information relative to a real estate transaction pursuant to Article 6 (commencing with Section 1086) of Chapter 1, Article 1.5 (commencing with Section 1102), or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3.
SEC. 18. SEC. 20.Section 1103 of the Civil Code is amended to read:1103.(a)For purpose of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(b)Except as provided in Section 1103.1, this article applies to the a sale, exchange, real property sales contract, as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any real property described in subdivision (d), or residential stock cooperative, improved with or consisting of not less than one nor more than four dwelling units.
(c)Except as provided in Section 1103.1, this article applies to a resale transaction entered into on or after January 1, 2000, for a manufactured home, as defined in Section 18007 of the Health and Safety Code, that is classified as personal property intended for use as a residence, or a mobilehome, as defined in Section 18008 of the Health and Safety Code, that is classified as personal property intended for use as a residence, if the real property on which the manufactured home or mobilehome is located is real property described in subdivision (d).
(d)This article shall apply to the transactions described in subdivisions (b) and (c) only if the seller or his or her agent is required by one or more of the following to disclose the propertys location within a hazard zone:
(1)A person who is acting as a real estate agent for a seller of real property that is located within a special flood hazard area (any type Zone A or V) designated by the Federal Emergency Management Agency, or the seller if he or she the seller is acting without a real estate agent, shall disclose to any prospective buyer the fact that the property is located within a special flood hazard area if either:
(A)The seller seller, or the sellers real estate agent, has actual knowledge that the property is within a special flood hazard area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the special flood hazard area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(2)A person who is acting as an agent for a seller of real property that is located within an area of potential flooding designated pursuant to Section 8589.5 of the Government Code, or the seller if he or she the seller is acting without an agent, shall disclose to any prospective buyer the fact that the property is located within an area of potential flooding if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within an inundation area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the inundation area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(3)A seller of real property that is located within a very high fire hazard severity zone, designated pursuant to Section 51178 of the Government Code, shall disclose to any prospective buyer the fact that the property is located within a very high fire hazard severity zone and is subject to the requirements of Section 51182 of the Government Code if either:
(A)The seller or the sellers agent, has actual knowledge that the property is within a very high fire hazard severity zone.
(B)A map that includes the property has been provided to the local agency pursuant to Section 51178 of the Government Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the local agency.
(4)A person who is acting as an agent for a seller of real property that is located within an earthquake fault zone, designated pursuant to Section 2622 of the Public Resources Code, or the seller if he or she the seller is acting without an agent, shall disclose to any prospective buyer the fact that the property is located within a delineated earthquake fault zone if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a delineated earthquake fault zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2622 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(5)A person who is acting as an agent for a seller of real property that is located within a seismic hazard zone, designated pursuant to Section 2696 of the Public Resources Code, or the seller if he or she the seller is acting without an agent, shall disclose to any prospective buyer the fact that the property is located within a seismic hazard zone if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a seismic hazard zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2696 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(6)A seller of real property that is located within a state responsibility area determined by the board, pursuant to Section 4125 of the Public Resources Code, shall disclose to any prospective buyer the fact that the property is located within a wildland area that may contain substantial forest fire risks and hazards and is subject to the requirements of Section 4291 of the Public Resources Code if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a wildland fire zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 4125 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(e)Any waiver of the requirements of this article is void as against public policy.
SEC. 19. SEC. 21.Section 1103.1 of the Civil Code is amended to read:1103.1.(a)This article does not apply to the following sales:
(1)Sales pursuant to court order, including, but not limited to, sales ordered by a probate court in administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, sales by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.
(2)Sales to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, transfers by any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, or sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure.
(3)Sales by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and he or she the seller is a former owner of the property or an occupant in possession of the property within the preceding year.
(4)Sales from one coowner to one or more other coowners.
(5)Sales made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the sellers.
(6)Sales between spouses resulting from a judgment of dissolution of marriage or of legal separation of the parties or from a property settlement agreement incidental to that judgment.
(7)Sales by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(8)Sales under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(9)Sales or exchanges to or from any governmental entity.
(b)Sales not subject to this article may be subject to other disclosure requirements, including those under Sections 8589.3, 8589.4, and 51183.5 of the Government Code and Sections 2621.9, 2694, and 4136 of the Public Resources Code. In sales not subject to this article, agents may make required disclosures in a separate writing.
SEC. 20. SEC. 22.Section 1103.2 of the Civil Code is amended to read:1103.2.(a)The disclosures required by this article are set forth in, and shall be made on a copy of, the following Natural Hazard Disclosure Statement:
NATURAL HAZARD DISCLOSURE STATEMENT | |
This statement applies to the following property: | |
The seller and his or her the sellers agent(s) or a third-party consultant disclose the following information with the knowledge that even though this is not a warranty, prospective buyers may rely on this information in deciding whether and on what terms to purchase the subject property. Seller hereby authorizes any agent(s) representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. | |
The following are representations made by the seller and his or her the sellers agent(s) based on their knowledge and maps drawn by the state and federal governments. This information is a disclosure and is not intended to be part of any contract between the seller and buyer. | |
THIS REAL PROPERTY LIES WITHIN THE FOLLOWING | |
A SPECIAL FLOOD HAZARD AREA (Any type Zone A or V) designated by the Federal Emergency Management Agency. | |
Yes____ No ____Do not know and | |
AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code. | |
Yes____ No ____Do not know and | |
A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. | |
Yes____ No ____ | |
A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the states responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. | |
Yes____ No____ | |
AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. | |
Yes____ No____ | |
A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public | |
Yes (Landslide Zone)____________Yes (Liquefaction Zone) ______ No____Map not yet released by state ____ | |
THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER. | |
THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER. SELLER(S) AND BUYER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. | |
Signature of Seller(s) | Date |
Signature of Seller(s) | Date |
Sellers Agent(s) | Date |
Sellers Agent(s) | Date |
Check only one of the following: | |
Seller(s) and their agent(s) represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s) and agent(s). | |
Seller(s) and their agent(s) acknowledge that they have exercised good faith in the selection of a third-party report provider as required in Section 1103.7 of the Civil Code Section 1103.7, Code, and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the independent third-party disclosure provider as a substituted disclosure pursuant to Section 1103.4 of the Civil Code Section 1103.4. Code. Neither seller(s) nor their agent(s) (1) has independently verified the information contained in this statement and report or (2) is personally aware of any errors or inaccuracies in the information contained on the statement. This statement was prepared by the provider below: | |
Third-Party Disclosure Provider(s) | Date |
Buyer represents that he or she has read and understands this document. Pursuant to Civil Code Section 1103.8, the representations made in this Natural Hazard Disclosure Statement do not constitute all of the sellers or agents disclosure obligations in this transaction. | |
Signature of Buyer(s) | Date |
Signature of Buyer(s) | Date |
(b)If an earthquake fault zone, seismic hazard zone, very high fire hazard severity zone, or wildland fire area map or accompanying information is not of sufficient accuracy or scale that a reasonable person can determine if the subject real property is included in a natural hazard area, the seller or sellers agent shall mark Yes on the Natural Hazard Disclosure Statement. The sellers agent may mark No on the Natural Hazard Disclosure Statement if he or she the seller attaches a report prepared pursuant to subdivision (c) of Section 1103.4 that verifies the property is not in the hazard zone. Nothing in this subdivision is intended to limit or abridge any existing duty of the seller or the sellers agent to exercise reasonable care in making a determination under this subdivision.
(c)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is no longer within a special flood hazard area, then the seller or sellers agent may mark No on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or sellers agent shall attach a copy of the Letter of Map Revision to the disclosure statement.
(d)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is within a special flood hazard area and the location of the letter has been posted pursuant to subdivision (g) of Section 8589.3 of the Government Code, then the seller or sellers agent shall mark Yes on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or sellers agent shall attach a copy of the Letter of Map Revision to the disclosure statement.
(e)The disclosure required pursuant to this article may be provided by the seller and the sellers agent in the Local Option Real Estate Disclosure Statement described in Section 1102.6a, provided that the Local Option Real Estate Disclosure Statement includes substantially the same information and substantially the same warnings that are required by this section.
(f)(1)The legal effect of a consultants report delivered to satisfy the exemption provided by Section 1103.4 is not changed when it is accompanied by a Natural Hazard Disclosure Statement.
(2)A consultants report shall always be accompanied by a completed and signed Natural Hazard Disclosure Statement.
(3)In a disclosure statement required by this section, an agent and third-party provider may cause his or her name to be preprinted in lieu of an original signature in the portions of the form reserved for signatures. The use of a preprinted name shall not change the legal effect of the acknowledgment.
(g)The disclosure required by this article is only a disclosure between the seller, the sellers agents, and the prospective buyer, and shall not be used by any other party, including, but not limited to, insurance companies, lenders, or governmental agencies, for any purpose.
(h)In any transaction in which a seller has accepted, prior to June 1, 1998, an offer to purchase, the seller, or his or her agent shall be deemed to have complied with the requirement of subdivision (a) if the seller or agent delivers to the prospective buyer a statement that includes substantially the same information and warning as the Natural Hazard Disclosure Statement.
SEC. 21. SEC. 23.Section 1103.3 of the Civil Code is amended to read:1103.3.(a)The seller of any real property subject to this article shall deliver to the prospective buyer the written statement required by this article, as follows:
(1)In the case of a sale, as soon as practicable before transfer of title.
(2)In the case of a sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before the prospective buyers execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(b)The seller shall indicate compliance with this article either on the real property sales contract, the lease, any addendum attached thereto, or on a separate document.
(c)If any disclosure, or any material amendment of any disclosure, required to be made pursuant to this article is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person, five days after delivery by deposit in the mail, or five days after delivery of an electronic record in transactions where the parties have agreed to conduct the transaction by electronic means, as described in Section 1633.5, to terminate his or her offer by delivery of a written notice of termination to the seller or the sellers agent.
SEC. 22. SEC. 24.Section 1103.4 of the Civil Code is amended to read:1103.4.(a)Neither the seller nor any listing agent or buyers agent shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or the listing agent or selling buyers agent and was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting the information.
(b)The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller, listing agent, and buyers agent of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, or expert in natural hazard discovery dealing with matters within the scope of the professionals license or expertise shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral. In responding to that request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1103.2 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where such a statement is furnished, the expert shall not be responsible for any items of information or parts thereof, other than those expressly set forth in the statement.
(1)In responding to the request, the expert shall determine whether the property is within an airport influence area as defined in subdivision (b) of Section 11010 of the Business and Professions Code. If the property is within an airport influence area, the report shall contain the following statement:
NOTICE OF AIRPORT IN VICINITY | |
This property is presently located in the vicinity of an |
(2)In responding to the request, the expert shall determine whether the property is within the jurisdiction of the San Francisco Bay Conservation and Development Commission, as defined in Section 66620 of the Government Code. If the property is within the commissions jurisdiction, the report shall contain the following notice:
NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION JURISDICTION
This property is located within the jurisdiction of the San Francisco Bay Conservation and Development Commission. Use and development of property within the commissions jurisdiction may be subject to special regulations, restrictions, and permit requirements.
You may wish to investigate and determine whether they are acceptable to you and your intended use of the property before you complete your transaction.
(3)In responding to the request, the expert shall determine whether the property is presently located within one mile of a parcel of real property designated as Prime Farmland, Farmland of Statewide Importance, Unique Farmland, Farmland of Local Importance, or Grazing Land on the most current Important Farmland Map issued by the California Department of Conservation, Division of Land Resource Protection, utilizing solely the county-level GIS map data, if any, available on the Farmland Mapping and Monitoring Program Web site. If the residential property is within one mile of a designated farmland area, the report shall contain the following notice:
NOTICE OF RIGHT TO FARM
This property is located within one mile of a farm or ranch land designated on the current county-level GIS Important Farmland Map, issued by the California Department of Conservation, Division of Land Resource Protection. Accordingly, the property may be subject to inconveniences or discomforts resulting from agricultural operations that are a normal and necessary aspect of living in a community with a strong rural character and a healthy agricultural sector. Customary agricultural practices in farm operations may include, but are not limited to, noise, odors, dust, light, insects, the operation of pumps and machinery, the storage and disposal of manure, bee pollination, and the ground or aerial application of fertilizers, pesticides, and herbicides. These agricultural practices may
occur at any time during the 24-hour day. Individual sensitivities to those practices can vary from person to person. You may wish to consider the impacts of such agricultural practices before you complete your purchase. Please be advised that you may be barred from obtaining legal remedies against agricultural practices conducted in a manner consistent with proper and accepted customs and standards pursuant to Section 3482.5 of the Civil Code or any pertinent local ordinance.
(4)In responding to the request, the expert shall determine, utilizing map coordinate data made available by the Office of Mine Reclamation, whether the property is presently located within one mile of a mine operation for which map coordinate data has been reported to the director pursuant to Section 2207 of the Public Resources Code. If the expert determines, from the available map coordinate data, that the residential property is located within one mile of a mine operation, the report shall contain the following notice:
NOTICE OF MINING OPERATIONS:
This property is located within one mile of a mine operation for which the mine owner or operator has reported mine location data to the Department of Conservation pursuant to Section 2207 of the Public Resources Code. Accordingly, the property may be subject to inconveniences resulting from mining operations. You may wish to consider the impacts of these practices before you complete your transaction.
SEC. 23. SEC. 25.Section 1103.5 of the Civil Code is amended to read:1103.5.(a)After a seller and his or her agent comply with Section 1103.2, they shall be relieved of further duty under this article with respect to those items of information. The seller and his or her the sellers agent shall not be required to provide notice to the prospective buyer if the information provided subsequently becomes inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence, unless the seller or agent has actual knowledge that the information has become inaccurate.
(b)If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence subsequent to the delivery of the required disclosures, the inaccuracy resulting therefrom does not constitute a violation of this article.
SEC. 24. SEC. 26.Section 1103.8 of the Civil Code is amended to read:1103.8.(a)The specification of items for disclosure in this article does not limit or abridge any obligation for disclosure created by any other provision of law or that may exist in order to avoid fraud, misrepresentation, or deceit in the sale transaction. The Legislature does not intend to affect the existing obligations of the parties to a real estate contract, or their agents, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical condition of the property and previously received reports of physical inspection noted on the disclosure form provided pursuant to Section 1102.6 or 1102.6a.
(b)Nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079.
SEC. 25. SEC. 27.Section 1103.9 of the Civil Code is amended to read:1103.9.Any disclosure made pursuant to this article may be amended in writing by the seller or his or her the sellers agent, but the amendment shall be subject to Section 1103.3.
SEC. 26. SEC. 28.Section 1103.12 of the Civil Code is amended to read:1103.12.(a)In a real estate transaction subject to this article, a buyers broker or a dual broker shall, except as otherwise provided in this article, deliver the disclosure required by this article to the buyer, unless the seller has given other written instructions for delivery. If there is only one real estate broker in a transaction subject to this article, that real estate broker shall deliver the disclosure required by this article to the buyer. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.
(b)If a licensed real estate broker responsible for delivering the disclosures under this section cannot obtain the disclosure document required and does not have written assurance from the buyer that the disclosure has been received, the broker shall advise the buyer in writing of his or her the buyers rights to the disclosure. A licensed real estate broker responsible for delivering disclosures under this section shall maintain a record of the action taken to effect compliance in accordance with Section 10148 of the Business and Professions Code.
SEC. 27. SEC. 29.Section 1103.14 of the Civil Code is repealed.SEC. 30.Section 1103.15 is added to the Civil Code, to read:1103.15.Nothing in Assembly Bill 1289 of the 20172018 Regular Session or in Assembly Bill 2884 of the 201718 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciarys responsibilities and obligations to disclose information relative to a real estate transaction pursuant to Article 6 (commencing with Section 1086) of Chapter 1, Article 1.5 (commencing with Section 1102), or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3.
SEC. 28. SEC. 31.Section 2079 of the Civil Code is amended to read:2079.(a)It is the duty of a real estate broker or salesperson, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to a prospective buyer of residential real property comprising one to four dwelling units, or a manufactured home as defined in Section 18007 of the Health and Safety Code, to conduct a reasonably competent and diligent visual inspection of the property offered for sale and to disclose to that prospective buyer all facts materially affecting the value or desirability of the property that an investigation would reveal, if that broker has a written contract with the seller to find or obtain a buyer or is a broker who acts in cooperation with that broker to find and obtain a buyer.
(b)It is the duty of a real estate broker or salesperson, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to comply with this section and any regulations imposing standards of professional conduct adopted pursuant to Section 10080 of the Business and Professions Code with reference to Sections 10176 and 10177 of the Business and Professions Code.
SEC. 29. SEC. 32.Section 2079.6 of the Civil Code is amended to read:2079.6.This article does not apply to sales which are required to be preceded by the furnishing, to a prospective buyer, of a copy of a public report pursuant to Section 11018.1 or Section 11234 of the Business and Professions Code and sales that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code, unless the property has been previously occupied.
SEC. 30. SEC. 33.Section 2079.7 of the Civil Code is amended to read:2079.7.(a)If a consumer information booklet described in Section 10084.1 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 of the Civil Code, or manufactured housing, as defined in Section 18007 of the Health and Safety Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, common environmental hazards, as described in the booklet, that can affect real property.
(b)Notwithstanding subdivision (a), nothing in this section either increases or decreases the duties, if any, of sellers or brokers, including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or Section 25359.7 of the Health and Safety Code, or alters the duty of a seller or broker to disclose the existence of known environmental hazards on or affecting the real property.
SEC. 31. SEC. 34.Section 2079.8 of the Civil Code is amended to read:2079.8.(a)If a Homeowners Guide to Earthquake Safety described in Section 10149 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers or brokers, including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, or alters the duty of a seller or broker to disclose the existence of known hazards on or affecting the real property.
SEC. 32. SEC. 35.Section 2079.9 of the Civil Code is amended to read:2079.9.(a)If a Commercial Property Owners Guide to Earthquake Safety described in Section 10147 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers, their real estate brokers or agents under this article or under Chapter 7.5 (commencing with Section 2621) or Chapter 7.8 (commencing with Section 2690) of Division 2 of the Public Resources Code, or alters the duty of a seller, agent, or broker to disclose the existence of known hazards on or affecting the real property.
SEC. 33. SEC. 36.Section 2079.10 of the Civil Code is amended to read:2079.10.(a)If the informational booklet published pursuant to Section 25402.9 of the Public Resources Code, concerning the statewide home energy rating program adopted pursuant to Section 25942 of the Public Resources Code, is delivered to a buyer in connection with the sale of real property, including, but not limited to, property specified in Section 1102, manufactured homes as defined in Section 18007 of the Health and Safety Code, and property subject to Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, the seller or broker is not required to provide information additional to that contained in the booklet concerning home energy ratings, and the information in the booklet shall be deemed to be adequate to inform the buyer about the existence of a statewide home energy rating program.
(b)Notwithstanding subdivision (a), nothing in this section alters any existing duty of the seller or broker under any other law including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, or Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, to disclose information concerning the existence of a home energy rating program affecting the real property.
(c)If the informational booklet or materials described in Section 375.5 of the Water Code concerning water conservation and water conservation programs are delivered to a buyer in connection with the sale of real property, including property described in subdivision (a), the seller or broker is not required to provide information concerning water conservation and water conservation programs that is additional to that contained in the booklet or materials, and the information in the booklet or materials shall be deemed to be adequate to inform the buyer about water conservation and water conservation programs.
SEC. 34. SEC. 37.Section 2079.10.5 of the Civil Code is amended to read:2079.10.5.(a)Every contract for the sale of residential real property entered into on or after July 1, 2013, shall contain, in not less than 8-point type, a notice as specified below:
NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES
This notice is being provided simply to inform you that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via the National Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at http://www.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS Internet Web site.
(b)Upon delivery of the notice to the buyer of the real property, the seller or broker is not required to provide information in addition to that contained in the notice regarding gas and hazardous liquid transmission pipelines in subdivision (a). The information in the notice shall be deemed to be adequate to inform the buyer about the existence of a statewide database of the locations of gas and hazardous liquid transmission pipelines and information from the database regarding those locations.
(c)Nothing in this section shall alter any existing duty under any other statute or decisional law imposed upon the seller or broker, including, but not limited to, the duties of a seller or broker under this article, or the duties of a seller or broker under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 35. SEC. 38.Section 2079.10a of the Civil Code is amended to read:2079.10a.(a)Every lease or rental agreement for residential real property entered into on or after July 1, 1999, and every contract for the sale of residential real property comprised of one to four dwelling units entered into on or after that date, shall contain, in not less than 8-point type, a notice as specified in paragraph (1), (2), or (3).
(1)A contract entered into by the parties on or after July 1, 1999, and before September 1, 2005, shall contain the following notice:
Notice: The California Department of Justice, sheriffs departments, police departments serving jurisdictions of 200,000 or more, and many other local law enforcement authorities maintain for public access a database of the locations of persons required to register pursuant to subdivision (a) of Section 290.4 of the Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice also maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a 900 telephone service. Callers shall have specific information about individuals they are checking. Information regarding neighborhoods is not available through the 900 telephone service.
(2)A contract entered into by the parties on or after September 1, 2005, and before April 1, 2006, shall contain either the notice specified in paragraph (1) or the notice specified in paragraph (3).
(3)A contract entered into by the parties on or after April 1, 2006, shall contain the following notice:
Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offenders criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she the offender resides.
(b)Subject to subdivision (c), upon delivery of the notice to the lessee or buyer of the real property, the lessor, seller, or broker is not required to provide information in addition to that contained in the notice regarding the proximity of registered sex offenders. The information in the notice shall be deemed to be adequate to inform the lessee or buyer about the existence of a statewide database of the locations of registered sex offenders and information from the database regarding those locations. The information in the notice shall not give rise to any cause of action against the disclosing party by a registered sex offender.
(c)Notwithstanding subdivisions (a) and (b), nothing in this section shall alter any existing duty of the lessor, seller, or broker under any other statute or decisional law including, but not limited to, the duties of a lessor, seller, or broker under this article, or the duties of a seller or broker under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 36. SEC. 39.Section 2079.13 of the Civil Code is amended to read:2079.13.As used in Sections 2079.7 and 2079.14 to 2079.24, inclusive, the following terms have the following meanings:
(a)Agent means a person acting under provisions of Title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained.
(b)Associate licensee means a person who is licensed as a real estate broker or salesperson under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code and who is either licensed under a broker or has entered into a written contract with a broker to act as the brokers agent in connection with acts requiring a real estate license and to function under the brokers supervision in the capacity of an associate licensee.
The agent in the real property transaction bears responsibility for his or her that agents associate licensees who perform as agents of the agent. When an associate licensee owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by the broker for whom the associate licensee functions.
(c)Buyer means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. Buyer includes vendee or lessee of real property.
(d)Commercial real property means all real property in the state, except single-family residential real property, dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, mobilehomes, as defined in Section 798.3, or recreational vehicles, as defined in Section 799.29.
(e)Dual agent means an agent acting, either directly or through an associate licensee, as agent for both the seller and the buyer in a real property transaction.
(f)Listing agreement means a contract between an owner of real property and an agent, by which the agent has been authorized to sell the real property or to find or obtain a buyer.
(g)Listing agent means a person who has obtained a listing of real property to act as an agent for compensation.
(h)Listing price is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the listing agent.
(i)Offering price is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property.
(j)Offer to purchase means a written contract executed by a buyer acting through a selling agent that becomes the contract for the sale of the real property upon acceptance by the seller.
(k)Real property means any estate specified by subdivision (1) or (2) of Section 761 in property that constitutes or is improved with one to four dwelling units, any commercial real property, any leasehold in these types of property exceeding one years duration, and mobilehomes, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code.
(l)Real property transaction means a transaction for the sale of real property in which an agent is employed by one or more of the principals to act in that transaction, and includes a listing or an offer to purchase.
(m)Sell, sale, or sold refers to a transaction for the transfer of real property from the seller to the buyer and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one years duration.
(n)Seller means the transferor in a real property transaction and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she the person is the owner from an agent on behalf of another. Seller includes both a vendor and a lessor of real property.
(o)Selling agent and buyers agent mean an agent who represents a buyer in a real property transaction.
SEC. 37. SEC. 40.Section 2079.14 of the Civil Code is amended to read:2079.14.Listing agents and buyers agents shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and shall obtain a signed acknowledgment of receipt from that seller or buyer, except as provided in Section 2079.15, as follows:
(a)The listing agent, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement.
(b)The buyers agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyers offer to purchase. If the offer to purchase is not prepared by the buyers agent, the buyers agent shall present the disclosure form to the buyer not later than the next business day after receiving the offer to purchase from the buyer.
SEC. 38. SEC. 41.Section 2079.15 of the Civil Code is amended to read:2079.15.In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the real estate agent shall set forth, sign, and date a written declaration of the facts of the refusal.
SEC. 39. SEC. 42.Section 2079.16 of the Civil Code is amended to read:2079.16.The disclosure form required by Section 2079.14 shall have Sections 2079.13 to 2079.24, inclusive, excluding this section, printed on the back, and on the front of the disclosure form the following shall appear:
DISCLOSURE REGARDING
REAL ESTATE AGENCY RELATIONSHIP
(As required by the Civil Code)
When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction.
SELLERS AGENT
A Sellers agent under a listing agreement with the Seller acts as the agent for the Seller only. A Sellers agent or a subagent of that agent has the following affirmative obligations:
To the Seller:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Seller.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the agents duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.
An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.
BUYERS AGENT
A selling agent can, with a Buyers consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Sellers agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations:
To the Buyer:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Buyer.
To the Buyer and the
Seller:
(a)Diligent exercise of reasonable skill and care in performance of the agents duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.
AGENT REPRESENTING BOTH SELLER AND BUYER
A real estate agent, either acting directly or through one or more associate licensees, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.
In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer:
(a)A fiduciary duty of utmost care, integrity, honesty honesty, and loyalty in the dealings with either the Seller or the Buyer.
(b)Other duties to the Seller and the Buyer as stated above in their respective sections.
In representing both Seller and Buyer, a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the buyers or sellers Buyers or Sellers financial position, motivations, bargaining position, or other personal information that may impact price, including the sellers Sellers willingness to accept a price less than the listing price or the buyers Buyers willingness to pay a price greater than the price offered.
SELLER AND BUYER RESPONSIBILITIES
Either the purchase agreement or a separate document will contain a confirmation of which agent is representing you and if that agent is representing you exclusively in the transaction or acting as a dual agent. Please pay attention to that confirmation to make sure it accurately reflects your understanding of your agents role.
The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.
If you are a Buyer, you have the duty to exercise reasonable care to protect yourself, including as to those facts about the property which are known to you or within your diligent attention and observation.
Both Sellers and Buyers should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change.
Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction.
This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on the reverse hereof. Read it carefully.
Agent(date) | Buyer/Seller(date) |
(Signature) | |
Associate Licensee(date) | Buyer/Seller(date) |
(Signature) | (Signature) |
(a)As soon as practicable, the buyers agent shall disclose to the buyer and seller whether the agent is acting in the real property transaction as the buyers agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the buyers agent prior to or coincident with execution of that contract by the buyer and the seller, respectively.
(b)As soon as practicable, the sellers agent shall disclose to the seller whether the sellers agent is acting in the real property transaction as the sellers agent, or as a dual agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the sellers agent prior to or coincident with the execution of that contract by the seller.
(c)The confirmation required by subdivisions (a) and (b) shall be in the following form:
(Name of Sellers Broker, Brokerage firm and license number) is the broker of (check one): | |
[]the seller; or | |
[]both the buyer and seller. (dual broker) | |
(Name of Sellers Agent and license number) is (check one): | |
[]is the Sellers Agent. (salesperson or broker associate) | |
[]is both the Buyers and Sellers Agent. (dual agent) | |
(Name of Buyers Broker, Brokerage firm and license number) is the broker of (check one): | |
[]the buyer; or | |
[]both the buyer and seller. (dual broker) | |
(Name of Buyers Agent and license number) is (check one): | |
[]the Buyers Agent. (salesperson or broker associate) | |
[]both the Buyers and Sellers Agent. (dual agent) |
(d)The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. An agents duty to provide disclosure and confirmation of representation in this section may be performed by a real estate salesperson or broker associate affiliated with that broker.
SEC. 41. SEC. 44.Section 2079.18 of the Civil Code is repealed.SEC. 42. SEC. 45.Section 2079.21 of the Civil Code is amended to read:2079.21.(a)A dual agent may not, without the express permission of the seller, disclose to the buyer any confidential information obtained from the seller.
(b)A dual agent may not, without the express permission of the buyer, disclose to the seller any confidential information obtained from the buyer.
(c)Confidential information means facts relating to the clients financial position, motivations, bargaining position, or other personal information that may impact price, such as the seller is willing to accept a price less than the listing price or the buyer is willing to pay a price greater than the price offered.
(d)This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price.
SEC. 43. SEC. 46.Section 2079.22 of the Civil Code is amended to read:2079.22.Nothing in this article precludes a sellers agent from also being a buyers agent. If a seller or buyer in a transaction chooses to not be represented by an agent, that does not, of itself, make that agent a dual agent.
SEC. 44.Nothing in this act nor in Assembly Bill 749 of the 201718 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciarys responsibilities and obligations to disclose information relative to a real estate transaction pursuant to Article 6 (commencing with Section 1086) of Chapter 1 of Title 4 of Part 4 of Division 2 of, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of, or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3 of, the Civil Code.SEC. 47.Section 2079.25 is added to the Civil Code, to read:2079.25.Nothing in Assembly Bill 1289 of the 20172018 Regular Session or in Assembly Bill 2884 of the 201718 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciarys responsibilities and obligations to disclose information relative to a real estate transaction pursuant to Article 6 (commencing with Section 1086) of Chapter 1 of Title 4 of Part 4 of Division 2 of, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of, or Article 2 (commencing with Section 2079).
SEC. 45. SEC. 48.This act shall not become operative unless Assembly Bill 749 2884 of the 201718 Regular Session, relating to real estate, is enacted and becomes effective on January 1, 2019.
(a)For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code apply.
(b)Agent means a person acting under provisions of Title 9 (commencing with Section 2295) of Part 4 of Division 3 in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained.
SEC. 2.Section 1087 of the Civil Code is amended to read:1087.A multiple listing service (MLS) is a facility of cooperation of agents and appraisers, operating through an intermediary that does not itself act as an agent or appraiser, through which agents establish express or implied contracts for compensation between real estate brokers that are MLS participants in accordance with its MLS rules with respect to listed properties in a listing agreement, or that may be used by agents and appraisers, pursuant to the rules of the service, to prepare market evaluations and appraisals of real property.
SEC. 3.Section 1088 of the Civil Code is amended to read:1088.A listing may not be placed in a multiple listing service unless authorized or directed by the seller in the listing.
If an agent or appraiser places a listing or other information in the multiple listing service, that agent or appraiser shall be responsible for the truth of all representations and statements made by the agent or appraiser of which that agent or appraiser had knowledge or reasonably should have had knowledge to anyone injured by their falseness or inaccuracy.
SEC. 4.Section 1089 of the Civil Code is repealed.SEC. 5.Section 1090 of the Civil Code is amended to read:1090.Nothing in this article shall preclude a listing agent from also being the buyers agent.
SEC. 6.Section 1102 of the Civil Code is amended to read:1102.(a)Except as provided in Section 1102.2, this article applies to any sale of residential property.
(b)For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(c)Any waiver of the requirements of this article is void as against public policy.
SEC. 7.Section 1102.2 of the Civil Code is amended to read:1102.2.This article does not apply to the following:
(a)Sales that are required to be preceded by the furnishing to a prospective buyer of a copy of a public report pursuant to Section 11018.1 of the Business and Professions Code and transfers that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code.
(b)Sales pursuant to court order, including, but not limited to, sales ordered by a probate court in the administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, transfers by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.
(c)Sales to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure, sales to the legal owner or lienholder of a manufactured home or mobilehome by a registered owner or successor in interest who is in default, or sales by reason of any foreclosure of a security interest in a manufactured home or mobilehome.
(d)Sales by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and he or she is a former owner of the property or was an occupant in possession of the property within the preceding year.
(e)Sales from one coowner to one or more other coowners.
(f)Sales made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors.
(g)Sales between spouses resulting from a judgment of dissolution of marriage or of legal separation or from a property settlement agreement incidental to that judgment.
(h)Sales by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(i)Sales under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(j)Sales or exchanges to or from any governmental entity.
(k)Sales of any portion of a property not constituting residential property with one to four dwelling units.
SEC. 8.Section 1102.3 of the Civil Code is amended to read:1102.3.The seller of any real property subject to this article shall deliver to the prospective buyer the completed written statement required by this article, as follows:
(a)In the case of a sale, as soon as practicable before transfer of title.
(b)In the case of sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(c)With respect to any sale subject to subdivision (a) or (b), the seller shall indicate compliance with this article on the real property sales contract, the lease, or any addendum attached thereto or on a separate document.
If any disclosure, or any material amendment of any disclosure, required to be made by this article, is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person or person, five days after delivery by deposit in the mail, or five days after delivery of an electronic record in transactions where the parties have agreed to conduct the transaction by electronic means, as described in Section 1633.5, to terminate his or her offer by delivery of a written notice of termination to the seller or the sellers agent. The disclosure is complete when Sections I, II and III in the form described in Section 1102.6 are completed and delivered. A real estate agent may complete his or her portion of the required disclosure by providing all of the information on the agents inspection disclosure set forth in Section 1102.6.
SEC. 9.Section 1102.4 of the Civil Code is amended to read:1102.4.(a)Neither the seller nor any listing agent or buyers agent shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or that listing or buyers agent, was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting it.
(b)The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller or any listing or buyers agent of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, structural pest control operator, contractor, a C-39 roofing contractor conducting a roof inspection pursuant to subdivision (d) of Section 7197 of the Business and Professions Code, or other expert, dealing with matters within the scope of the professionals license or expertise, shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral. In responding to such a request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1102.6 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable.
SEC. 10.Section 1102.5 of the Civil Code is amended to read:1102.5.If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any act, occurrence, or agreement subsequent to the delivery of the required disclosures, any inaccuracy resulting therefrom does not constitute a violation of this article. If at the time the disclosures are required to be made, an item of information required to be disclosed is unknown or not available to the seller, and the seller or his or her agent has made a reasonable effort to ascertain it, the seller may use an approximation of the information, provided the approximation is clearly identified as such, is reasonable, is based on the best information reasonably available to the seller or his or her agent, and is not used for the purpose of circumventing or evading this article.
SEC. 11.Section 1102.6a of the Civil Code is amended to read:1102.6a.(a)On and after July 1, 1990, any city or county may elect to require disclosures on the form set forth in subdivision (b) in addition to those disclosures required by Section 1102.6. However, this section does not affect or limit the authority of a city or county to require disclosures on a different disclosure form in connection with transactions subject to this article pursuant to an ordinance adopted prior to July 1, 1990. An ordinance like this adopted prior to July 1, 1990, may be amended thereafter to revise the disclosure requirements of the ordinance, in the discretion of the city council or county board of supervisors.
(b)Disclosures required pursuant to this section pertaining to the property proposed to be sold, shall be set forth in, and shall be made on a copy of, the following disclosure form:
PRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE INSERTED(c)This section does not preclude the use of addenda to the form specified in subdivision (b) to facilitate the required disclosures. This section does not preclude a city or county from using the disclosure form specified in subdivision (b) for a purpose other than that specified in this section.
(d)(1)On and after January 1, 2005, if a city or county adopts a different or additional disclosure form pursuant to this section regarding the proximity or effects of an airport, the statement in that form shall contain, at a minimum, the information in the statement Notice of Airport in Vicinity found in Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255.
(2)On and after January 1, 2006, if a city or county does not adopt a different or additional disclosure form pursuant to this section, then the provision of an airport influence area disclosure pursuant to Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255, or if there is not a current airport influence map, a written disclosure of an airport within two statute miles, shall be deemed to satisfy any city or county requirements for the disclosure of airports in connection with sales of real property.
SEC. 12.Section 1102.6b of the Civil Code is amended to read:1102.6b.(a)This section applies to all sales of real property for which all of the following apply:
(1)The sale is subject to this article.
(2)The property being sold is subject to a continuing lien securing the levy of special taxes pursuant to the Mello-Roos Community Facilities Act (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code), to a fixed lien assessment collected in installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or to a contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code.
(3)A notice is not required pursuant to Section 53341.5 of the Government Code.
(b)In addition to any other disclosure required pursuant to this article, the seller of any real property subject to this section shall make a good faith effort to obtain a disclosure notice concerning the special tax as provided for in Section 53340.2 of the Government Code, or a disclosure notice concerning an assessment installment as provided in Section 53754 of the Government Code, from each local agency that levies a special tax pursuant to the Mello-Roos Community Facilities Act, or that collects assessment installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or a disclosure notice concerning the contractual assessment as provided in Section 5898.24 of the Streets and Highways Code, on the property being sold, and shall deliver that notice or those notices to the prospective buyer, as long as the notices are made available by the local agency.
(c)(1)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) by delivering a disclosure notice that is substantially equivalent and obtained from another source until December 31, 2004.
(2)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the assessments collected under the contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code by delivering a disclosure notice that is substantially equivalent and obtained from another source.
(3)For the purposes of this section, a substantially equivalent disclosure notice includes, but is not limited to, a copy of the most recent years property tax bill or an itemization of current assessment amounts applicable to the property.
(d)(1)Notwithstanding subdivision (c), the seller of real property subject to this section may satisfy the disclosure notice requirements of this section by delivering a disclosure notice obtained from a nongovernmental source that satisfies the requirements of paragraph (2).
(2)A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe a special tax pursuant to the Mello-Roos Community Facilities Act levied against the property or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy a special tax pursuant to the Mello-Roos Community Facilities Act against the property, and shall include the name of the Mello-Roos entity levying taxes against the property, the annual tax due for the Mello-Roos entity for the current tax year, the maximum tax that may be levied against the property in any year, the percentage by which the maximum tax for the Mello-Roos entity may increase per year, and the date until the tax may be levied against the property for the Mello-Roos entity and a contact telephone number, if available, for further information about the Mello-Roos entity. A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe special assessments and bonds pursuant to the Improvement Bond Act of 1915 levied against the property, or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy special assessments and bonds pursuant to the Improvement Bond Act of 1915 against the property, and shall include the name of the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915, the current annual tax on the property for the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915 and a contact telephone number, if available, for further information about the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915.
(3)This section does not change the ability to make disclosures pursuant to Section 1102.4 of the Civil Code.
(e)If a disclosure received pursuant to subdivision (b), (c), or (d) has been delivered to the buyer, a seller or his or her agent is not required to provide additional information concerning, and information in the disclosure shall be deemed to satisfy the responsibility of the seller or his or her agent to inform the buyer regarding the special tax or assessment installments and the district. Notwithstanding subdivision (b), (c), or (d), nothing in this section imposes a duty to discover a special tax or assessment installments or the existence of any levying district not actually known to the agents.
SEC. 13.Section 1102.6c of the Civil Code is amended to read:1102.6c.(a)In addition to any other disclosure required pursuant to this article, it shall be the sole responsibility of the seller of any real property subject to this article, or his or her agent, to deliver to the prospective buyer a disclosure notice that includes both of the following:
(1)A notice, in at least 12-point type or a contrasting color, as follows:
California property tax law requires the Assessor to revalue real property at the time the ownership of the property changes. Because of this law, you may receive one or two supplemental tax bills, depending on when your loan closes.
The supplemental tax bills are not mailed to your lender. If you have arranged for your property tax payments to be paid through an impound account, the supplemental tax bills will not be paid by your lender. It is your responsibility to pay these supplemental bills directly to the tax collector. If you have any question concerning this matter, please call your local tax collectors office.
(2)A title, in at least 14-point type or a contrasting color, that reads as follows: Notice of Your Supplemental Property Tax Bill.
(b)The disclosure notice requirements of this section may be satisfied by delivering a disclosure notice pursuant to Section 1102.6b that satisfies the requirements of subdivision (a).
SEC. 14.Section 1102.9 of the Civil Code is amended to read:1102.9.Any disclosure made pursuant to this article may be amended in writing by the seller or his or her agent, but the amendment shall be subject to Section 1102.3 or 1102.3a.
SEC. 15.Section 1102.12 of the Civil Code is amended to read:1102.12.(a)In a real estate transaction subject to this article, a buyers agent or a dual agent shall, except as otherwise provided in this article, deliver the disclosure required by this article to the buyer, unless the seller has given other written instructions for delivery. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.
(b)If a real estate broker responsible for delivering the disclosures under this section cannot obtain the disclosure document required and does not have written assurance from the buyer that the disclosure has been received, the broker shall advise the buyer in writing of his or her rights to the disclosure. A real estate broker responsible for delivering disclosures under this section shall maintain a record of the action taken to effect compliance in accordance with Section 10148 of the Business and Professions Code.
SEC. 16.Section 1102.14 of the Civil Code is repealed.SEC. 17.Section 1102.155 of the Civil Code is amended to read:1102.155.(a)(1)The seller of residential real property subject to this article shall disclose, in writing, that Section 1101.4 requires that California single-family residences be equipped with water-conserving plumbing fixtures on or before January 1, 2017, and shall disclose whether the property includes any noncompliant plumbing fixtures as defined in subdivision (c) of Section 1101.3.
(2)The seller shall affirm that this representation is that of the seller and not a representation of any agent, and that this disclosure is not intended to be part of any contract between the buyer and the seller. The seller shall further affirm that this disclosure is not a warranty of any kind by the seller or any agent representing any principal in the transaction and is not a substitute for any inspections or warranties that any principal may wish to obtain.
(b)This section shall become operative on January 1, 2017.
SEC. 18.Section 1103 of the Civil Code is amended to read:1103.(a)For purpose of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(b)Except as provided in Section 1103.1, this article applies to the a sale, exchange, real property sales contract, as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any real property described in subdivision (d), or residential stock cooperative, improved with or consisting of not less than one nor more than four dwelling units.
(c)Except as provided in Section 1103.1, this article applies to a resale transaction entered into on or after January 1, 2000, for a manufactured home, as defined in Section 18007 of the Health and Safety Code, that is classified as personal property intended for use as a residence, or a mobilehome, as defined in Section 18008 of the Health and Safety Code, that is classified as personal property intended for use as a residence, if the real property on which the manufactured home or mobilehome is located is real property described in subdivision (d).
(d)This article shall apply to the transactions described in subdivisions (b) and (c) only if the seller or his or her agent is required by one or more of the following to disclose the propertys location within a hazard zone:
(1)A person who is acting as a real estate agent for a seller of real property that is located within a special flood hazard area (any type Zone A or V) designated by the Federal Emergency Management Agency, or the seller if he or she is acting without a real estate agent, shall disclose to any prospective buyer the fact that the property is located within a special flood hazard area if either:
(A)The seller or the sellers real estate agent, has actual knowledge that the property is within a special flood hazard area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the special flood hazard area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(2)A person who is acting as an agent for a seller of real property that is located within an area of potential flooding designated pursuant to Section 8589.5 of the Government Code, or the seller if he or she is acting without an agent, shall disclose to any prospective buyer the fact that the property is located within an area of potential flooding if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within an inundation area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the inundation area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(3)A seller of real property that is located within a very high fire hazard severity zone, designated pursuant to Section 51178 of the Government Code, shall disclose to any prospective buyer the fact that the property is located within a very high fire hazard severity zone and is subject to the requirements of Section 51182 of the Government Code if either:
(A)The seller or the sellers agent, has actual knowledge that the property is within a very high fire hazard severity zone.
(B)A map that includes the property has been provided to the local agency pursuant to Section 51178 of the Government Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the local agency.
(4)A person who is acting as an agent for a seller of real property that is located within an earthquake fault zone, designated pursuant to Section 2622 of the Public Resources Code, or the seller if he or she is acting without an agent, shall disclose to any prospective buyer the fact that the property is located within a delineated earthquake fault zone if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a delineated earthquake fault zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2622 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(5)A person who is acting as an agent for a seller of real property that is located within a seismic hazard zone, designated pursuant to Section 2696 of the Public Resources Code, or the seller if he or she is acting without an agent, shall disclose to any prospective buyer the fact that the property is located within a seismic hazard zone if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a seismic hazard zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2696 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(6)A seller of real property that is located within a state responsibility area determined by the board, pursuant to Section 4125 of the Public Resources Code, shall disclose to any prospective buyer the fact that the property is located within a wildland area that may contain substantial forest fire risks and hazards and is subject to the requirements of Section 4291 of the Public Resources Code if either:
(A)The seller, or the sellers agent, has actual knowledge that the property is within a wildland fire zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 4125 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(e)Any waiver of the requirements of this article is void as against public policy.
SEC. 19.Section 1103.1 of the Civil Code is amended to read:1103.1.(a)This article does not apply to the following sales:
(1)Sales pursuant to court order, including, but not limited to, sales ordered by a probate court in administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, sales by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.
(2)Sales to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, transfers by any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, or sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure.
(3)Sales by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and he or she is a former owner of the property or an occupant in possession of the property within the preceding year.
(4)Sales from one coowner to one or more other coowners.
(5)Sales made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the sellers.
(6)Sales between spouses resulting from a judgment of dissolution of marriage or of legal separation of the parties or from a property settlement agreement incidental to that judgment.
(7)Sales by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(8)Sales under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(9)Sales or exchanges to or from any governmental entity.
(b)Sales not subject to this article may be subject to other disclosure requirements, including those under Sections 8589.3, 8589.4, and 51183.5 of the Government Code and Sections 2621.9, 2694, and 4136 of the Public Resources Code. In sales not subject to this article, agents may make required disclosures in a separate writing.
SEC. 20.Section 1103.2 of the Civil Code is amended to read:1103.2.(a)The disclosures required by this article are set forth in, and shall be made on a copy of, the following Natural Hazard Disclosure Statement:
NATURAL HAZARD DISCLOSURE STATEMENT | |
This statement applies to the following property: | |
The seller and his or her agent(s) or a third-party consultant disclose the following information with the knowledge that even though this is not a warranty, prospective buyers may rely on this information in deciding whether and on what terms to purchase the subject property. Seller hereby authorizes any agent(s) representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. | |
The following are representations made by the seller and his or her agent(s) based on their knowledge and maps drawn by the state and federal governments. This information is a disclosure and is not intended to be part of any contract between the seller and buyer. | |
THIS REAL PROPERTY LIES WITHIN THE FOLLOWING | |
A SPECIAL FLOOD HAZARD AREA (Any type Zone A or V) designated by the Federal Emergency Management Agency. | |
Yes____ No ____Do not know and | |
AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code. | |
Yes____ No ____Do not know and | |
A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. | |
Yes____ No ____ | |
A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the states responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. | |
Yes____ No____ | |
AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. | |
Yes____ No____ | |
A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public | |
Yes (Landslide Zone)____________Yes (Liquefaction Zone) ______ No____Map not yet released by state ____ | |
THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER. | |
THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER. SELLER(S) AND BUYER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. | |
Signature of Seller(s) | Date |
Signature of Seller(s) | Date |
Sellers Agent(s) | Date |
Sellers Agent(s) | Date |
Check only one of the following: | |
Seller(s) and their agent(s) represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s) and agent(s). | |
Seller(s) and their agent(s) acknowledge that they have exercised good faith in the selection of a third-party report provider as required in Civil Code Section 1103.7, and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the independent third-party disclosure provider as a substituted disclosure pursuant to Civil Code Section 1103.4. Neither seller(s) nor their agent(s) (1) has independently verified the information contained in this statement and report or (2) is personally aware of any errors or inaccuracies in the information contained on the statement. This statement was prepared by the provider below: | |
Third-Party Disclosure Provider(s) | Date |
Buyer represents that he or she has read and understands this document. Pursuant to Civil Code Section 1103.8, the representations made in this Natural Hazard Disclosure Statement do not constitute all of the sellers or agents disclosure obligations in this transaction. | |
Signature of Buyer(s) | Date |
Signature of Buyer(s) | Date |
(b)If an earthquake fault zone, seismic hazard zone, very high fire hazard severity zone, or wildland fire area map or accompanying information is not of sufficient accuracy or scale that a reasonable person can determine if the subject real property is included in a natural hazard area, the seller or sellers agent shall mark Yes on the Natural Hazard Disclosure Statement. The sellers agent may mark No on the Natural Hazard Disclosure Statement if he or she attaches a report prepared pursuant to subdivision (c) of Section 1103.4 that verifies the property is not in the hazard zone. Nothing in this subdivision is intended to limit or abridge any existing duty of the seller or the sellers agent to exercise reasonable care in making a determination under this subdivision.
(c)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is no longer within a special flood hazard area, then the seller or sellers agent may mark No on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or sellers agent shall attach a copy of the Letter of Map Revision to the disclosure statement.
(d)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is within a special flood hazard area and the location of the letter has been posted pursuant to subdivision (g) of Section 8589.3 of the Government Code, then the seller or sellers agent shall mark Yes on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or sellers agent shall attach a copy of the Letter of Map Revision to the disclosure statement.
(e)The disclosure required pursuant to this article may be provided by the seller and the sellers agent in the Local Option Real Estate Disclosure Statement described in Section 1102.6a, provided that the Local Option Real Estate Disclosure Statement includes substantially the same information and substantially the same warnings that are required by this section.
(f)(1)The legal effect of a consultants report delivered to satisfy the exemption provided by Section 1103.4 is not changed when it is accompanied by a Natural Hazard Disclosure Statement.
(2)A consultants report shall always be accompanied by a completed and signed Natural Hazard Disclosure Statement.
(3)In a disclosure statement required by this section, an agent and third-party provider may cause his or her name to be preprinted in lieu of an original signature in the portions of the form reserved for signatures. The use of a preprinted name shall not change the legal effect of the acknowledgment.
(g)The disclosure required by this article is only a disclosure between the seller, the sellers agents, and the prospective buyer, and shall not be used by any other party, including, but not limited to, insurance companies, lenders, or governmental agencies, for any purpose.
(h)In any transaction in which a seller has accepted, prior to June 1, 1998, an offer to purchase, the seller, or his or her agent shall be deemed to have complied with the requirement of subdivision (a) if the seller or agent delivers to the prospective buyer a statement that includes substantially the same information and warning as the Natural Hazard Disclosure Statement.
SEC. 21.Section 1103.3 of the Civil Code is amended to read:1103.3.(a)The seller of any real property subject to this article shall deliver to the prospective buyer the written statement required by this article, as follows:
(1)In the case of a sale, as soon as practicable before transfer of title.
(2)In the case of a sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before the prospective buyers execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(b)The seller shall indicate compliance with this article either on the real property sales contract, the lease, any addendum attached thereto, or on a separate document.
(c)If any disclosure, or any material amendment of any disclosure, required to be made pursuant to this article is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person or person, five days after delivery by deposit in the mail, or five days after delivery of an electronic record in transactions where the parties have agreed to conduct the transaction by electronic means, as described in Section 1633.5, to terminate his or her offer by delivery of a written notice of termination to the seller or the sellers agent.
SEC. 22.Section 1103.4 of the Civil Code is amended to read:1103.4.(a)Neither the seller nor any listing agent or buyers agent shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or the listing agent or selling buyers agent and was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting the information.
(b)The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller, listing agent, and buyers agent of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, or expert in natural hazard discovery dealing with matters within the scope of the professionals license or expertise shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral. In responding to that request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1103.2 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable.
(1)In responding to the request, the expert shall determine whether the property is within an airport influence area as defined in subdivision (b) of Section 11010 of the Business and Professions Code. If the property is within an airport influence area, the report shall contain the following statement:
NOTICE OF AIRPORT IN VICINITY | |
This property is presently located in the vicinity of an |
(2)In responding to the request, the expert shall determine whether
the property is within the jurisdiction of the San Francisco Bay Conservation and Development Commission, as defined in Section 66620 of the Government Code. If the property is within the commissions jurisdiction, the report shall contain the following notice:
NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION JURISDICTION
This property is located within the jurisdiction of the San Francisco Bay Conservation and Development Commission. Use and development of property within the commissions jurisdiction may be subject to special regulations, restrictions, and permit requirements. You may wish to investigate and determine whether they are acceptable to you and your intended use of the property before you complete your transaction.
(3)In responding to the
request, the expert shall determine whether the property is presently located within one mile of a parcel of real property designated as Prime Farmland, Farmland of Statewide Importance, Unique Farmland, Farmland of Local Importance, or Grazing Land on the most current Important Farmland Map issued by the California Department of Conservation, Division of Land Resource Protection, utilizing solely the county-level GIS map data, if any, available on the Farmland Mapping and Monitoring Program Web site. If the residential property is within one mile of a designated farmland area, the report shall contain the following notice:
NOTICE OF RIGHT TO FARM
This property is located within one mile of a farm or ranch land designated on the current county-level GIS Important Farmland Map,
issued by the California Department of Conservation, Division of Land Resource Protection. Accordingly, the property may be subject to inconveniences or discomforts resulting from agricultural operations that are a normal and necessary aspect of living in a community with a strong rural character and a healthy agricultural sector. Customary agricultural practices in farm operations may include, but are not limited to, noise, odors, dust, light, insects, the operation of pumps and machinery, the storage and disposal of manure, bee pollination, and the ground or aerial application of fertilizers, pesticides, and herbicides. These agricultural practices may occur at any time during the 24-hour day. Individual sensitivities to those practices can vary from person to person. You may wish to consider the impacts of such agricultural practices before you complete your purchase. Please be advised
that you may be barred from obtaining legal remedies against agricultural practices conducted in a manner consistent with proper and accepted customs and standards pursuant to Section 3482.5 of the Civil Code or any pertinent local ordinance.
(4)In responding to the request, the expert shall determine, utilizing map coordinate data made available by the Office of Mine Reclamation, whether the property is presently located within one mile of a mine operation for which map coordinate data has been reported to the director pursuant to Section 2207 of the Public Resources Code. If the expert determines, from the available map coordinate data, that the residential property is located within one mile of a mine operation, the report shall contain the following notice:
NOTICE OF MINING OPERATIONS:
This property is located within one mile of a mine operation for which the mine owner or operator has reported mine location data to the Department of Conservation pursuant to Section 2207 of the Public Resources Code. Accordingly, the property may be subject to inconveniences resulting from mining operations. You may wish to consider the impacts of these practices before you complete your transaction.
SEC. 23.Section 1103.5 of the Civil Code is amended to read:1103.5.(a)After a seller and his or her agent comply with Section 1103.2, they shall be relieved of further duty under this article with respect to those items of information. The seller and his or her agent shall not be required to provide notice to the prospective buyer if the information provided subsequently becomes inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence, unless the seller or agent has actual knowledge that the information has become inaccurate.
(b)If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence subsequent to the delivery of the required disclosures, the inaccuracy resulting therefrom does not constitute a violation of this article.
SEC. 24.Section 1103.8 of the Civil Code is amended to read:1103.8.(a)The specification of items for disclosure in this article does not limit or abridge any obligation for disclosure created by any other provision of law or that may exist in order to avoid fraud, misrepresentation, or deceit in the sale transaction. The Legislature does not intend to affect the existing obligations of the parties to a real estate contract, or their agents, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical condition of the property and previously received reports of physical inspection noted on the disclosure form provided pursuant to Section 1102.6 or 1102.6a.
(b)Nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079.
SEC. 25.Section 1103.9 of the Civil Code is amended to read:1103.9.Any disclosure made pursuant to this article may be amended in writing by the seller or his or her agent, but the amendment shall be subject to Section 1103.3.
SEC. 26.Section 1103.12 of the Civil Code is amended to read:1103.12.(a)In a real estate transaction subject to this article, a buyers broker or a dual broker shall, except as otherwise provided in this article, deliver the disclosure required by this article to the buyer, unless the seller has given other written instructions for delivery. If there is only one real estate broker in a transaction subject to this article, that real estate broker shall deliver the disclosure required by this article to the buyer. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.
(b)If a licensed real estate broker responsible for delivering the disclosures under this section cannot obtain the disclosure document required and does not have written assurance from the buyer that the disclosure has been received, the broker shall advise the buyer in writing of his or her rights to the disclosure. A licensed real estate broker responsible for delivering disclosures under this section shall maintain a record of the action taken to effect compliance in accordance with Section 10148 of the Business and Professions Code.
SEC. 27.Section 1103.14 of the Civil Code is repealed.SEC. 28.Section 2079 of the Civil Code is amended to read:2079.(a)It is the duty of a real estate broker or salesperson, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to a prospective buyer of residential real property comprising one to four dwelling units, or a manufactured home as defined in Section 18007 of the Health and Safety Code, to conduct a reasonably competent and diligent visual inspection of the property offered for sale and to disclose to that prospective buyer all facts materially affecting the value or desirability of the property that an investigation would reveal, if that broker has a written contract with the seller to find or obtain a buyer or is a broker who acts in cooperation with that broker to find and obtain a buyer.
(b)It is the duty of a real estate broker or salesperson, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to comply with this section and any regulations imposing standards of professional conduct adopted pursuant to Section 10080 of the Business and Professions Code with reference to Sections 10176 and 10177 of the Business and Professions Code.
SEC. 29.Section 2079.6 of the Civil Code is amended to read:2079.6.This article does not apply to sales which are required to be preceded by the furnishing, to a prospective buyer, of a copy of a public report pursuant to Section 11018.1 or Section 11234 of the Business and Professions Code and sales that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code, unless the property has been previously occupied.
SEC. 30.Section 2079.7 of the Civil Code is amended to read:2079.7.(a)If a consumer information booklet described in Section 10084.1 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 of the Civil Code, or manufactured housing, as defined in Section 18007 of the Health and Safety Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, common environmental hazards, as described in the booklet, that can affect real property.
(b)Notwithstanding subdivision (a), nothing in this section either increases or decreases the duties, if any, of sellers or brokers, including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or Section 25359.7 of the Health and Safety Code, or alters the duty of a seller or broker to disclose the existence of known environmental hazards on or affecting the real property.
SEC. 31.Section 2079.8 of the Civil Code is amended to read:2079.8.(a)If a Homeowners Guide to Earthquake Safety described in Section 10149 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers or brokers, including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, or alters the duty of a seller or broker to disclose the existence of known hazards on or affecting the real property.
SEC. 32.Section 2079.9 of the Civil Code is amended to read:2079.9.(a)If a Commercial Property Owners Guide to Earthquake Safety described in Section 10147 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers, their real estate brokers or agents under this article or under Chapter 7.5 (commencing with Section 2621) or Chapter 7.8 (commencing with Section 2690) of Division 2 of the Public Resources Code, or alters the duty of a seller, agent, or broker to disclose the existence of known hazards on or affecting the real property.
SEC. 33.Section 2079.10 of the Civil Code is amended to read:2079.10.(a)If the informational booklet published pursuant to Section 25402.9 of the Public Resources Code, concerning the statewide home energy rating program adopted pursuant to Section 25942 of the Public Resources Code, is delivered to a buyer in connection with the sale of real property, including, but not limited to, property specified in Section 1102, manufactured homes as defined in Section 18007 of the Health and Safety Code, and property subject to Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, the seller or broker is not required to provide information additional to that contained in the booklet concerning home energy ratings, and the information in the booklet shall be deemed to be adequate to inform the buyer about the existence of a statewide home energy rating program.
(b)Notwithstanding subdivision (a), nothing in this section alters any existing duty of the seller or broker under any other law including, but not limited to, the duties of a seller or broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, or Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, to disclose information concerning the existence of a home energy rating program affecting the real property.
(c)If the informational booklet or materials described in Section 375.5 of the Water Code concerning water conservation and water conservation programs are delivered to a buyer in connection with the sale of real property, including property described in subdivision (a), the seller or broker is not required to provide information concerning water conservation and water conservation programs that is additional to that contained in the booklet or materials, and the information in the booklet or materials shall be deemed to be adequate to inform the buyer about water conservation and water conservation programs.
SEC. 34.Section 2079.10.5 of the Civil Code is amended to read:2079.10.5.(a)Every contract for the sale of residential real property entered into on or after July 1, 2013, shall contain, in not less than 8-point type, a notice as specified below:
NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES
This notice is being provided simply to inform you that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via the National Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at http://www.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS Internet Web site.
(b)Upon delivery of the notice to the buyer of the real property, the seller or broker is not required to provide information in addition to that contained in the notice regarding gas and hazardous liquid transmission pipelines in subdivision (a). The information in the notice shall be deemed to be adequate to inform the buyer about the existence of a statewide database of the locations of gas and hazardous liquid transmission pipelines and information from the database regarding those locations.
(c)Nothing in this section shall alter any existing duty under any other statute or decisional law imposed upon the seller or broker, including, but not limited to, the duties of a seller or broker under this article, or the duties of a seller or broker under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 35.Section 2079.10a of the Civil Code is amended to read:2079.10a.(a)Every lease or rental agreement for residential real property entered into on or after July 1, 1999, and every contract for the sale of residential real property comprised of one to four dwelling units entered into on or after that date, shall contain, in not less than 8-point type, a notice as specified in paragraph (1), (2), or (3).
(1)A contract entered into by the parties on or after July 1, 1999, and before September 1, 2005, shall contain the following notice:
Notice: The California Department of Justice, sheriffs departments, police departments serving jurisdictions of 200,000 or more, and many other local law enforcement authorities maintain for public access a database of the locations of persons required to register pursuant to subdivision (a) of Section 290.4 of the Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice also maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a 900 telephone service. Callers shall have specific information about individuals they are checking. Information regarding neighborhoods is not available through the 900 telephone service.
(2)A contract entered into by the parties on or after September 1, 2005, and before April 1, 2006, shall contain either the notice specified in paragraph (1) or the notice specified in paragraph (3).
(3)A contract entered into by the parties on or after April 1, 2006, shall contain the following notice:
Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offenders criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides.
(b)Subject to subdivision (c), upon delivery of the notice to the lessee or buyer of the real property, the lessor, seller, or broker is not required to provide information in addition to that contained in the notice regarding the proximity of registered sex offenders. The information in the notice shall be deemed to be adequate to inform the lessee or buyer about the existence of a statewide database of the locations of registered sex offenders and information from the database regarding those locations. The information in the notice shall not give rise to any cause of action against the disclosing party by a registered sex offender.
(c)Notwithstanding subdivisions (a) and (b), nothing in this section shall alter any existing duty of the lessor, seller, or broker under any other statute or decisional law including, but not limited to, the duties of a lessor, seller, or broker under this article, or the duties of a seller or broker under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 36.Section 2079.13 of the Civil Code is amended to read:2079.13.As used in Sections 2079.7 and 2079.14 to 2079.24, inclusive, the following terms have the following meanings:
(a)Agent means a person acting under provisions of Title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained.
(b)Associate licensee means a person who is licensed as a real estate broker or salesperson under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code and who is either licensed under a broker or has entered into a written contract with a broker to act as the brokers agent in connection with acts requiring a real estate license and to function under the brokers supervision in the capacity of an associate licensee.
The agent in the real property transaction bears responsibility for his or her associate licensees who perform as agents of the agent. When an associate licensee owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by the broker for whom the associate licensee functions.
(c)Buyer means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. Buyer includes vendee or lessee of real property.
(d)Commercial real property means all real property in the state, except single-family residential real property, dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, mobilehomes, as defined in Section 798.3, or recreational vehicles, as defined in Section 799.29.
(e)Dual agent means an agent acting, either directly or through an associate licensee, as agent for both the seller and the buyer in a real property transaction.
(f)Listing agreement means a contract between an owner of real property and an agent, by which the agent has been authorized to sell the real property or to find or obtain a buyer.
(g)Listing agent means a person who has obtained a listing of real property to act as an agent for compensation.
(h)Listing price is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the listing agent.
(i)Offering price is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property.
(j)Offer to purchase means a written contract executed by a buyer acting through a selling agent that becomes the contract for the sale of the real property upon acceptance by the seller.
(k)Real property means any estate specified by subdivision (1) or (2) of Section 761 in property that constitutes or is improved with one to four dwelling units, any commercial real property, any leasehold in these types of property exceeding one years duration, and mobilehomes, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code.
(l)Real property transaction means a transaction for the sale of real property in which an agent is employed by one or more of the principals to act in that transaction, and includes a listing or an offer to purchase.
(m)Sell, sale, or sold refers to a transaction for the transfer of real property from the seller to the buyer and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one years duration.
(n)Seller means the transferor in a real property transaction and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. Seller includes both a vendor and a lessor of real property.
(o)Selling agent and buyers agent mean an agent who represents a buyer in a real property transaction.
SEC. 37.Section 2079.14 of the Civil Code is amended to read:2079.14.Listing agents and buyers agents shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and shall obtain a signed acknowledgment of receipt from that seller or buyer, except as provided in Section 2079.15, as follows:
(a)The listing agent, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement.
(b)The buyers agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyers offer to purchase. If the offer to purchase is not prepared by the buyers agent, the buyers agent shall present the disclosure form to the buyer not later than the next business day after receiving the offer to purchase from the buyer.
SEC. 38.Section 2079.15 of the Civil Code is amended to read:2079.15.In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the real estate agent shall set forth, sign, and date a written declaration of the facts of the refusal.
SEC. 39.Section 2079.16 of the Civil Code is amended to read:2079.16.The disclosure form required by Section 2079.14 shall have Sections 2079.13 to 2079.24, inclusive, excluding this section, printed on the back, and on the front of the disclosure form the following shall appear:
DISCLOSURE REGARDING
REAL ESTATE AGENCY RELATIONSHIP
(As required by the Civil Code)
When you enter into a discussion with a real estate agent regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent in the transaction.
SELLERS AGENT
A Sellers agent under a listing agreement with the Seller acts as
the agent for the Seller only. A Sellers agent or a subagent of that agent has the following affirmative obligations:
To the Seller:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Seller.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the agents duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.
An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.
BUYERS AGENT
A selling agent can, with a Buyers consent, agree to act as agent for the Buyer only. In these situations, the agent is not the Sellers agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from the Seller. An agent acting only for a Buyer has the following affirmative obligations:
To the Buyer:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Buyer.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the agents duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above.
AGENT REPRESENTING BOTH SELLER AND BUYER
A real estate agent, either acting directly or through one or more associate licensees, can legally be the agent of both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.
In a dual agency situation, the agent has the following affirmative obligations to both the Seller and the Buyer:
(a)A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either the Seller or the Buyer.
(b)Other duties to the Seller and the Buyer as stated above in their respective sections.
In representing both Seller and Buyer, the agent may not, without the express permission of the respective party, disclose to the other party that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered. a dual agent may not, without the express permission of the respective party, disclose to the other party confidential information, including, but not limited to, facts relating to either the buyers or sellers financial position, motivations, bargaining position, or other personal information that may impact price, including the sellers willingness to accept a price less than the listing price or the buyers willingness to pay a price greater than the price offered.
SELLER AND BUYER RESPONSIBILITIES
Either the purchase agreement or a separate document will contain a confirmation of which agent is representing you and if that agent is representing you exclusively in the transaction or acting as a dual agent. Please pay attention to that confirmation to make sure it accurately reflects your understanding of your agents role.
The above duties of the agent in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.
If you are a Buyer, you have the duty to exercise reasonable care to protect yourself, including as to those facts about the property which are known to you or within your diligent attention and observation.
Both Sellers and Buyers should strongly consider obtaining tax advice from a competent professional because the federal and state tax consequences of a transaction can be complex and subject to change.
Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction.
This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on the reverse hereof. Read it carefully.
Agent(date) | Buyer/Seller(date) |
(Signature) | |
Associate Licensee(date) | Buyer/Seller(date) |
(Signature) | (Signature) |
(a)As soon as practicable, the buyers agent shall disclose to the buyer and seller whether the agent is acting in the real property transaction as the buyers agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the buyers agent prior to or coincident with execution of that contract by the buyer and the seller, respectively.
(b)As soon as practicable, the sellers agent shall disclose to the seller whether the sellers agent is acting in the real property transaction as the sellers agent, or as a dual agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the sellers agent prior to or coincident with the execution of that contract by the seller.
(c)The confirmation required by subdivisions (a) and (b) shall be in the following form:
(Name of Sellers Broker, Brokerage firm and license number) is the broker of (check one): | |
[]the seller; or | |
[]both the buyer and seller. (dual broker) | |
(Name of Sellers Agent and license number) is (check one): | |
[]is the Sellers Agent. (salesperson or broker associate) | |
[]is both the Buyers and Sellers Agent. (dual agent) | |
(Name of Buyers Broker, Brokerage firm and license number) is the broker of (check one): | |
[]the buyer; or | |
[]both the buyer and seller. (dual broker) | |
(Name of Buyers Agent and license number) is (check one): | |
[]the Buyers Agent. (salesperson or broker associate) | |
[]both the Buyers and Sellers Agent. (dual agent) |
(d)The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. An agents duty to provide disclosure and confirmation of representation in this section may be performed by a real estate salesperson or broker associate affiliated with that broker.
SEC. 40.SEC. 41.Section 2079.18 of the Civil Code is repealed.SEC. 41.SEC. 42.Section 2079.21 of the Civil Code is amended to read:2079.21.(a)A dual agent may not, without the express permission of the seller, disclose to the buyer any confidential information obtained from the seller.
(b)A dual agent may not, without the express permission of the buyer, disclose to the seller any confidential information obtained from the buyer.
(c)Confidential information means facts relating to the clients financial position, motivations, bargaining position, or other personal information that may impact price, such as the seller is willing to accept a price less than the listing price or the buyer is willing to pay a price greater than the price offered.
(d)This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price.
SEC. 42.SEC. 43.Section 2079.22 of the Civil Code is amended to read:2079.22.Nothing in this article precludes a sellers agent from also being a buyers agent. If a seller or buyer in a transaction chooses to not be represented by an agent, that does not, of itself, make that agent a dual agent.
SEC. 43.SEC. 44.Nothing in this act nor in Assembly Bill 749 of the 201718 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciarys responsibilities and obligations to disclose information relative to a real estate transaction pursuant to Article 6 (commencing with Section 1086) of Chapter 1 of Title 4 of Part 4 of Division 2 of, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of, or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3 of, the Civil Code.
SEC. 44.SEC. 45.This act shall not become operative unless Assembly Bill 749 of the 201718 Regular Session, relating to real estate, is enacted and becomes effective on January 1, 2019.
For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code apply.
SEC. 2.Section 1087 of the Civil Code is amended to read:1087.A multiple listing service (MLS) is a facility of cooperation of real estate brokers agents and appraisers, operating through an intermediary that does not itself act as a real estate licensee an agent or appraiser, through which real estate brokers agents establish express or implied contracts for compensation between real estate brokers that are MLS participants in accordance with its MLS rules with respect to listed properties in a listing agreement, or that may be used by real estate licensees agents and appraisers, pursuant to the rules of the service, to prepare market evaluations and appraisals of real property.
SEC. 3.Section 1088 of the Civil Code is amended to read:1088.A listing may not be placed in a multiple listing service unless authorized or directed by the seller in the listing.
If a real estate licensee an agent or appraiser places a listing or other information in the multiple listing service, that real estate licensee agent or appraiser shall be responsible for the truth of all representations and statements made by the real estate licensee agent or appraiser of which that real estate licensee agent or appraiser had knowledge or reasonably should have had knowledge to anyone injured by their falseness or inaccuracy.
SEC. 4.Section 1089 of the Civil Code is repealed.SEC. 5.Section 1090 of the Civil Code is amended to read:1090.Nothing in this article shall preclude a listing licensee agent from also being the buyers licensee. agent.
SEC. 6.Section 1102 of the Civil Code is amended to read:1102.(a)Except as provided in Section 1102.2, this article applies to any sale of residential property.
(b)For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(c)Any waiver of the requirements of this article is void as against public policy.
SEC. 7.Section 1102.1 of the Civil Code is amended to read:1102.1.(a)In enacting Chapter 817 of the Statutes of 1994, it was the intent of the Legislature to clarify and facilitate the use of the real estate disclosure statement, as specified in Section 1102.6. The Legislature intended the statement to be used by sellers making disclosures required under this article and by real estate licensees making disclosures required by Section 2079 on the real estate licensees portion of the real estate disclosure statement, in transfers subject to this article. In transfers not subject to this article, real estate licensees may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their real estate licensees, to disclose any known fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a, and that nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079.It is also the intent of the Legislature that the delivery of a real estate transfer disclosure statement may not be waived in an as is sale, as held in Loughrin v. Superior Court (1993) 15 Cal. App. 4th 1188.(b)In enacting Chapter 677 of the Statutes of 1996, it was the intent of the Legislature to clarify and facilitate the use of the manufactured home and mobilehome transfer disclosure statement applicable to the resale of a manufactured home or mobilehome pursuant to subdivision (b) of Section 1102. The Legislature intended the statements to be used by transferors making disclosures required under this article and by real estate licensees making disclosures required by Section 2079 on the real estate licensees portion of the disclosure statement and as required by Section 18046 of the Health and Safety Code on the dealers portion of the manufactured home and mobilehome transfer disclosure statement, in transfers subject to this article. In transfers not subject to this article, real estate licensees may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their real estate licensees, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a or to affect the existing obligations of the parties to a manufactured home or mobilehome purchase contract, and nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079 or the duty of a manufactured home or mobilehome dealer or salesperson pursuant to Section 18046 of the Health and Safety Code.It is also the intent of the Legislature that the delivery of a mobilehome transfer disclosure statement may not be waived in an as is sale.(c)It is the intent of the Legislature that manufactured home and mobilehome dealers and salespersons and real estate brokers and salespersons use the form provided pursuant to Section 1102.6d. It is also the intent of the Legislature for sellers of manufactured homes or mobilehomes who are neither manufactured home dealers or salespersons nor real estate brokers or salespersons to use the Manufactured Home/Mobilehome Transfer Disclosure Statement contained in Section 1102.6d.SEC. 8.SEC. 7.Section 1102.2 of the Civil Code is amended to read:1102.2.This article does not apply to the following:
(a)Sales that are required to be preceded by the furnishing to a prospective buyer of a copy of a public report pursuant to Section 11018.1 of the Business and Professions Code and transfers that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code.
(b)Sales pursuant to court order, including, but not limited to, sales ordered by a probate court in the administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, transfers by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.
(c)Sales to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure, sales to the legal owner or lienholder of a manufactured home or mobilehome by a registered owner or successor in interest who is in default, or sales by reason of any foreclosure of a security interest in a manufactured home or mobilehome.
(d)Sales by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and he or she is a former owner of the property or was an occupant in possession of the property within the preceding year.
(e)Sales from one coowner to one or more other coowners.
(f)Sales made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors.
(g)Sales between spouses resulting from a judgment of dissolution of marriage or of legal separation or from a property settlement agreement incidental to that judgment.
(h)Sales by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(i)Sales under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(j)Sales or exchanges to or from any governmental entity.
(k)Sales of any portion of a property not constituting residential property with one to four dwelling units.
SEC. 9.SEC. 8.Section 1102.3 of the Civil Code is amended to read:1102.3.The seller of any real property subject to this article shall deliver to the prospective buyer the completed written statement required by this article, as follows:
(a)In the case of a sale, as soon as practicable before transfer of title.
(b)In the case of sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(c)With respect to any sale subject to subdivision (a) or (b), the seller shall indicate compliance with this article on the real property sales contract, the lease, or any addendum attached thereto or on a separate document.
If any disclosure, or any material amendment of any disclosure, required to be made by this article, is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person or five days after delivery by deposit in the mail or delivery of an electronic record, mail, to terminate his or her offer by delivery of a written notice of termination to the seller or the sellers licensee. agent. The disclosure is complete when Sections I, II and III in the form described in Section 1102.6 are completed and delivered. A real estate licensee agent may complete his or her portion of the required disclosure by providing all of the information on the licensees agents inspection disclosure set forth in Section 1102.6.
SEC. 10.Section 1102.4 of the Civil Code is amended to read:1102.4.(a)Neither the seller nor any listing licensee or buyers licensee shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or that listing or buyers licensee, was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting it.(b)The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller or any listing or buyers licensee of any further duty under this article with respect to that item of information.(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, structural pest control operator, contractor, or other expert, dealing with matters within the scope of the professionals license or expertise, shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral.SEC. 9.Section 1102.4 of the Civil Code is amended to read:1102.4.(a)Neither the transferor seller nor any listing agent or selling buyers agent shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the transferor seller or that listing or selling buyers agent, was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting it.
(b)The delivery of any information required to be disclosed by this article to a prospective transferee buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the transferor seller or any listing or selling buyers agent of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, structural pest control operator, contractor, a C-39 roofing contractor conducting a roof inspection pursuant to subdivision (d) of Section 7197 of the Business and Professions Code, or other expert, dealing with matters within the scope of the professionals license or expertise, shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective transferee buyer pursuant to a request therefor, whether written or oral. In responding to such a request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1102.6 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where such a statement is furnished, the expert shall not be responsible for any items of information, or parts thereof, other than those expressly set forth in the statement.
SEC. 11.SEC. 10.Section 1102.5 of the Civil Code is amended to read:1102.5.If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any act, occurrence, or agreement subsequent to the delivery of the required disclosures, any inaccuracy resulting therefrom does not constitute a violation of this article. If at the time the disclosures are required to be made, an item of information required to be disclosed is unknown or not available to the seller, and the seller or his or her real estate licensee agent has made a reasonable effort to ascertain it, the seller may use an approximation of the information, provided the approximation is clearly identified as such, is reasonable, is based on the best information reasonably available to the seller or his or her real estate licensee, agent, and is not used for the purpose of circumventing or evading this article.
SEC. 12.SEC. 11.Section 1102.6a of the Civil Code is amended to read:1102.6a.(a)Any On and after July 1, 1990, any city or county may elect to require disclosures on the form set forth in subdivision (b) in addition to those disclosures required by Section 1102.6. However, this section does not affect or limit the authority of a city or county to require disclosures on a different disclosure form in connection with transactions subject to this article pursuant to an ordinance adopted prior to July 1, 1990. An ordinance like this adopted prior to July 1, 1990, may be amended thereafter to revise the disclosure requirements of the ordinance, in the discretion of the city council or county board of supervisors.
(b)Disclosures required pursuant to this section pertaining to the property proposed to be sold, shall be set forth in, and shall be made on a copy of, the following disclosure form:
PRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE INSERTED(c)This section does not preclude the use of addenda to the form specified in subdivision (b) to facilitate the required disclosures. This section does not preclude a city or county from using the disclosure form specified in subdivision (b) for a purpose other than that specified in this section.
(d)(1)On and after January 1, 2005, if a city or county adopts a different or additional disclosure form pursuant to this section regarding the proximity or effects of an airport, the statement in that form shall contain, at a minimum, the information in the statement Notice of Airport in Vicinity found in Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255.
(2)On and after January 1, 2006, if a city or county does not adopt a different or additional disclosure form pursuant to this section, then the provision of an airport influence area disclosure pursuant to Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255, or if there is not a current airport influence map, a written disclosure of an airport within two statute miles, shall be deemed to satisfy any city or county requirements for the disclosure of airports in connection with sales of real property.
SEC. 13.SEC. 12.Section 1102.6b of the Civil Code is amended to read:1102.6b.(a)This section applies to all sales of real property for which all of the following apply:
(1)The sale is subject to this article.
(2)The property being sold is subject to a continuing lien securing the levy of special taxes pursuant to the Mello-Roos Community Facilities Act (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code), to a fixed lien assessment collected in installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or to a contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code.
(3)A notice is not required pursuant to Section 53341.5 of the Government Code.
(b)In addition to any other disclosure required pursuant to this article, the seller of any real property subject to this section shall make a good faith effort to obtain a disclosure notice concerning the special tax as provided for in Section 53340.2 of the Government Code, or a disclosure notice concerning an assessment installment as provided in Section 53754 of the Government Code, from each local agency that levies a special tax pursuant to the Mello-Roos Community Facilities Act, or that collects assessment installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or a disclosure notice concerning the contractual assessment as provided in Section 5898.24 of the Streets and Highways Code, on the property being sold, and shall deliver that notice or those notices to the prospective buyer, as long as the notices are made available by the local agency.
(c)(1)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) by delivering a disclosure notice that is substantially equivalent and obtained from another source. source until December 31, 2004.
(2)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the assessments collected under the contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code by delivering a disclosure notice that is substantially equivalent and obtained from another source.
(3)For the purposes of this section, a substantially equivalent disclosure notice includes, but is not limited to, a copy of the most recent years property tax bill or an itemization of current assessment amounts applicable to the property.
(d)(1)Notwithstanding subdivision (c), the seller of real property subject to this section may satisfy the disclosure notice requirements of this section by delivering a disclosure notice obtained from a nongovernmental source that satisfies the requirements of paragraph (2).
(2)A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe a special tax pursuant to the Mello-Roos Community Facilities Act levied against the property or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy a special tax pursuant to the Mello-Roos Community Facilities Act against the property, and shall include the name of the Mello-Roos entity levying taxes against the property, the annual tax due for the Mello-Roos entity for the current tax year, the maximum tax that may be levied against the property in any year, the percentage by which the maximum tax for the Mello-Roos entity may increase per year, and the date until the tax may be levied against the property for the Mello-Roos entity and a contact telephone number, if available, for further information about the Mello-Roos entity. A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe special assessments and bonds pursuant to the Improvement Bond Act of 1915 levied against the property, or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy special assessments and bonds pursuant to the Improvement Bond Act of 1915 against the property, and shall include the name of the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915, the current annual tax on the property for the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915 and a contact telephone number, if available, for further information about the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915.
(3)This section does not change the ability to make disclosures pursuant to Section 1102.4 of the Civil Code.
(e)If a disclosure received pursuant to subdivision (b), (c), or (d) has been delivered to the buyer, a seller or his or her real estate licensee agent is not required to provide additional information concerning, and information in the disclosure shall be deemed to satisfy the responsibility of the seller or his or her real estate licensee agent to inform the buyer regarding the special tax or assessment installments and the district. Notwithstanding subdivision (b), (c), or (d), nothing in this section imposes a duty to discover a special tax or assessment installments or the existence of any levying district not actually known to the real estate licensees. agents.
SEC. 14.SEC. 13.Section 1102.6c of the Civil Code is amended to read:1102.6c.(a)In addition to any other disclosure required pursuant to this article, it shall be the sole responsibility of the seller of any real property subject to this article, or his or her real estate licensee, agent, to deliver to the prospective buyer a disclosure notice that includes both of the following:
(1)A notice, in at least 12-point type or a contrasting color, as follows:
California property tax law requires the Assessor to revalue real property at the time the ownership of the property changes. Because of this law, you may receive one or two supplemental tax bills, depending on when your loan closes.
The supplemental tax bills are not mailed to your lender. If you have arranged for your property tax payments to be paid through an impound account, the supplemental tax bills will not be paid by your lender. It is your responsibility to pay these supplemental bills directly to the tax collector. If you have any question concerning this matter, please call your local tax collectors office.
(2)A title, in at least 14-point type or a contrasting color, that reads as follows: Notice of Your Supplemental Property Tax Bill.
(b)The disclosure notice requirements of this section may be satisfied by delivering a disclosure notice pursuant to Section 1102.6b that satisfies the requirements of subdivision (a).
SEC. 15.SEC. 14.Section 1102.9 of the Civil Code is amended to read:1102.9.Any disclosure made pursuant to this article may be amended in writing by the seller or his or her real estate licensee, agent, but the amendment shall be subject to Section 1102.3 or 1102.3a.
SEC. 16.SEC. 15.Section 1102.12 of the Civil Code is amended to read:1102.12.(a)In a real estate transaction subject to this article, a buyers licensee agent or a dual licensee agent shall, except as otherwise provided in this article, deliver the disclosure required by this article to the buyer, unless the seller has given other written instructions for delivery. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.
(b)If a real estate licensee broker responsible for delivering the disclosures under this section cannot obtain the disclosure document required and does not have written assurance from the buyer that the disclosure has been received, the real estate licensee broker shall advise the buyer in writing of his or her rights to the disclosure. A real estate licensee broker responsible for delivering disclosures under this section shall maintain a record of the action taken to effect compliance in accordance with Section 10148 of the Business and Professions Code.
SEC. 17.SEC. 16.Section 1102.14 of the Civil Code is repealed.SEC. 18.SEC. 17.Section 1102.155 of the Civil Code is amended to read:1102.155.(a)(1)The seller of residential real property subject to this article shall disclose, in writing, that Section 1101.4 requires that California single-family residences be equipped with water-conserving plumbing fixtures on or before January 1, 2017, and shall disclose whether the property includes any noncompliant plumbing fixtures as defined in subdivision (c) of Section 1101.3.
(2)The seller shall affirm that this representation is that of the seller and not a representation of any real estate licensee, agent, and that this disclosure is not intended to be part of any contract between the buyer and the seller. The seller shall further affirm that this disclosure is not a warranty of any kind by the seller or any real estate licensee agent representing any principal in the transaction and is not a substitute for any inspections or warranties that any principal may wish to obtain.
(b)This section shall become operative on January 1, 2017.
SEC. 19.Section 1103 of the Civil Code is amended to read:1103.(a)For purposes of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.(b)Except as provided in Section 1103.1, this article applies to a sale, exchange, real property sales contract, as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any real property described in subdivision (d), or residential stock cooperative, improved with or consisting of not less than one nor more than four dwelling units.(c)Except as provided in Section 1103.1, this article applies to a resale transaction entered into for a manufactured home, as defined in Section 18007 of the Health and Safety Code, that is classified as personal property intended for use as a residence, or a mobilehome, as defined in Section 18008 of the Health and Safety Code, that is classified as personal property intended for use as a residence, if the real property on which the manufactured home or mobilehome is located is real property described in subdivision (d).(d)This article shall apply to the transactions described in subdivisions (b) and (c) only if the seller or his or her real estate licensee is required by one or more of the following to disclose the propertys location within a hazard zone:(1)A person who is acting a real estate licensee for a seller of real property that is located within a special flood hazard area (any type Zone A or V) designated by the Federal Emergency Management Agency, or the seller if he or she is acting without a real estate licensee, shall disclose to any prospective buyer the fact that the property is located within a special flood hazard area if either:(A)The seller, or the sellers real estate licensee, has actual knowledge that the property is within a special flood hazard area.(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the special flood hazard area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.(2)A person who is acting as a real estate licensee for a seller of real property that is located within an area of potential flooding designated pursuant to Section 8589.5 of the Government Code, or the seller if he or she is acting without a real estate licensee, shall disclose to any prospective buyer the fact that the property is located within an area of potential flooding if either:(A)The seller, or the sellers real estate licensee, has actual knowledge that the property is within an inundation area.(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the inundation area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.(3)A seller of real property that is located within a very high fire hazard severity zone, designated pursuant to Section 51178 of the Government Code, shall disclose to any prospective buyer the fact that the property is located within a very high fire hazard severity zone and is subject to the requirements of Section 51182 of the Government Code if either:(A)The seller or the sellers real estate licensee, has actual knowledge that the property is within a very high fire hazard severity zone.(B)A map that includes the property has been provided to the local agency pursuant to Section 51178 of the Government Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the local agency.(4)A person who is acting as a real estate licensee for a seller of real property that is located within an earthquake fault zone, designated pursuant to Section 2622 of the Public Resources Code, or the seller if he or she is acting without a real estate licensee, shall disclose to any prospective buyer the fact that the property is located within a delineated earthquake fault zone if either:(A)The seller, or the sellers real estate licensee, has actual knowledge that the property is within a delineated earthquake fault zone.(B)A map that includes the property has been provided to the city or county pursuant to Section 2622 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.(5)A person who is acting as a real estate licensee for a seller of real property that is located within a seismic hazard zone, designated pursuant to Section 2696 of the Public Resources Code, or the seller if he or she is acting without a real estate licensee shall disclose to any prospective buyer the fact that the property is located within a seismic hazard zone if either:(A)The seller, or the sellers real estate licensee, has actual knowledge that the property is within a seismic hazard zone.(B)A map that includes the property has been provided to the city or county pursuant to Section 2696 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.(6)A seller of real property that is located within a state responsibility area determined by the board, pursuant to Section 4125 of the Public Resources Code, shall disclose to any prospective buyer the fact that the property is located within a wildland area that may contain substantial forest fire risks and hazards and is subject to the requirements of Section 4291 of the Public Resources Code if either:(A)The seller, or the sellers real estate licensee, has actual knowledge that the property is within a wildland fire zone.(B)A map that includes the property has been provided to the city or county pursuant to Section 4125 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.(e)Any waiver of the requirements of this article is void as against public policy.SEC. 18.Section 1103 of the Civil Code is amended to read:1103.(a)Expect For purpose of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(b)Except as provided in Section 1103.1, this article applies to the transfer by a sale, exchange, installment land sale real property sales contract, as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any real property described in subdivision (c), (d), or residential stock cooperative, improved with or consisting of not less than one nor more than four dwelling units.
(b)(c)Except as provided in Section 1103.1, this article shall apply applies to a resale transaction entered into on or after January 1, 2000, for a manufactured home, as defined in Section 18007 of the Health and Safety Code, that is classified as personal property intended for use as a residence, or a mobilehome, as defined in Section 18008 of the Health and Safety Code, that is classified as personal property intended for use as a residence, if the real property on which the manufactured home or mobilehome is located is real property described in subdivision (c). (d).
(c)(d)This article shall apply to the transactions described in subdivisions (a) and (b) and (c) only if the transferor seller or his or her agent is required by one or more of the following to disclose the propertys location within a hazard zone:
(1)A person who is acting as an a real estate agent for a transferor seller of real property that is located within a special flood hazard area (any type Zone A or V) designated by the Federal Emergency Management Agency, or the transferor seller if he or she is acting without an a real estate agent, shall disclose to any prospective transferee buyer the fact that the property is located within a special flood hazard area if either:
(A)The transferor, seller or the transferors sellers real estate agent, has actual knowledge that the property is within a special flood hazard area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the special flood hazard area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(2)A person who is acting as an agent for a transferor seller of real property that is located within an area of potential flooding shown on an inundation map prepared designated pursuant to Section 6161 8589.5 of the Water Government Code, or the transferor seller if he or she is acting without an agent, shall disclose to any prospective transferee buyer the fact that the property is located within an area of potential flooding if either:
(A)The transferor, seller, or the transferors sellers agent, has actual knowledge that the property is within an inundation area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the inundation area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(3)A transferor seller of real property that is located within a very high fire hazard severity zone, designated pursuant to Section 51178 of the Government Code, shall disclose to any prospective transferee buyer the fact that the property is located within a very high fire hazard severity zone and is subject to the requirements of Section 51182 of the Government Code if either:
(A)The transferor, seller or the transferors sellers agent, has actual knowledge that the property is within a very high fire hazard severity zone.
(B)A map that includes the property has been provided to the local agency pursuant to Section 51178 of the Government Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the local agency.
(4)A person who is acting as an agent for a transferor seller of real property that is located within an earthquake fault zone, designated pursuant to Section 2622 of the Public Resources Code, or the transferor seller if he or she is acting without an agent, shall disclose to any prospective transferee buyer the fact that the property is located within a delineated earthquake fault zone if either:
(A)The transferor, seller, or the transferors sellers agent, has actual knowledge that the property is within a delineated earthquake fault zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2622 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(5)A person who is acting as an agent for a transferor seller of real property that is located within a seismic hazard zone, designated pursuant to Section 2696 of the Public Resources Code, or the transferor seller if he or she is acting without an agent, shall disclose to any prospective transferee buyer the fact that the property is located within a seismic hazard zone if either:
(A)The transferor, seller, or the transferors sellers agent, has actual knowledge that the property is within a seismic hazard zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2696 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(6)A transferor seller of real property that is located within a state responsibility area determined by the board, pursuant to Section 4125 of the Public Resources Code, shall disclose to any prospective transferee buyer the fact that the property is located within a wildland area that may contain substantial forest fire risks and hazards and is subject to the requirements of Section 4291 of the Public Resources Code if either:
(A)The transferor, seller, or the transferors sellers agent, has actual knowledge that the property is within a wildland fire zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 4125 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(d)(e)Any waiver of the requirements of this article is void as against public policy.
SEC. 20.SEC. 19.Section 1103.1 of the Civil Code is amended to read:1103.1.(a)This article does not apply to the following sales:
(1)Sales pursuant to court order, including, but not limited to, sales ordered by a probate court in administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, sales by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.
(2)Sales to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, transfers by any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, or sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure.
(3)Sales by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and he or she is a former owner of the property or an occupant in possession of the property within the preceding year.
(4)Sales from one coowner to one or more other coowners.
(5)Sales made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the sellers.
(6)Sales between spouses resulting from a judgment of dissolution of marriage or of legal separation of the parties or from a property settlement agreement incidental to that judgment.
(7)Sales by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(8)Sales under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(9)Sales or exchanges to or from any governmental entity.
(b)Sales not subject to this article may be subject to other disclosure requirements, including those under Sections 8589.3, 8589.4, and 51183.5 of the Government Code and Sections 2621.9, 2694, and 4136 of the Public Resources Code. In sales not subject to this article, real estate licensees agents may make required disclosures in a separate writing.
SEC. 21.SEC. 20.Section 1103.2 of the Civil Code is amended to read:1103.2.(a)The disclosures required by this article are set forth in, and shall be made on a copy of, the following Natural Hazard Disclosure Statement:
NATURAL HAZARD DISCLOSURE STATEMENT | |
This statement applies to the following property: | |
The seller and his or her real estate licensee(s) agent(s) or a third-party consultant disclose the following information with the knowledge that even though this is not a warranty, prospective buyers may rely on this information in deciding whether and on what terms to purchase the subject property. Seller hereby authorizes any real estate licensee(s) agent(s) representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. | |
The following are representations made by the seller and his or her real estate licensee(s) agent(s) based on their knowledge and maps drawn by the state and federal governments. This information is a disclosure and is not intended to be part of any contract between the seller and buyer. | |
THIS REAL PROPERTY LIES WITHIN THE FOLLOWING | |
A SPECIAL FLOOD HAZARD AREA (Any type Zone A or V) designated by the Federal Emergency Management Agency. | |
Yes____ No ____Do not know and | |
AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code. | |
Yes____ No ____Do not know and | |
A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. | |
Yes____ No ____ | |
A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the states responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. | |
Yes____ No____ | |
AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. | |
Yes____ No____ | |
A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public | |
Yes (Landslide Zone)____________Yes (Liquefaction Zone) ______ No____Map not yet released by state ____ | |
THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER. | |
THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER. SELLER(S) AND BUYER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. | |
Signature of Seller(s) | Date |
Signature of Seller(s) | Date |
Sellers Licensee(s) Agent(s) | Date |
Sellers Licensee(s) Agent(s) | Date |
Check only one of the following: | |
Seller(s) and their real estate licensee(s) agent(s) represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s) and agent(s). | |
Seller(s) and their real estate licensee(s) agent(s) acknowledge that they have exercised good faith in the selection of a third-party report provider as required in Civil Code Section 1103.7, and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the independent third-party disclosure provider as a substituted disclosure pursuant to Civil Code Section 1103.4. Neither seller(s) nor their real estate licensee(s) agent(s) (1) has independently verified the information contained in this statement and report or (2) is personally aware of any errors or inaccuracies in the information contained on the statement. This statement was prepared by the provider below: | |
Third-Party Disclosure Provider(s) | Date |
Buyer represents that he or she has read and understands this document. Pursuant to Civil Code Section 1103.8, the representations made in this Natural Hazard Disclosure Statement do not constitute all of the sellers or real estate licensees agents disclosure obligations in this transaction. | |
Signature of Buyer(s) | Date |
Signature of Buyer(s) | Date |
(b)If an earthquake fault zone, seismic hazard zone, very high fire hazard severity zone, or wildland fire area map or accompanying information is not of sufficient accuracy or scale that a reasonable person can determine if the subject real property is included in a natural hazard area, the seller or sellers real estate licensee agent shall mark Yes on the Natural Hazard Disclosure Statement. The sellers real estate licensee agent may mark No on the Natural Hazard Disclosure Statement if he or she attaches a report prepared pursuant to subdivision (c) of Section 1103.4 that verifies the property is not in the hazard zone. Nothing in this subdivision is intended to limit or abridge any existing duty of the seller or the sellers real estate licensees agent to exercise reasonable care in making a determination under this subdivision.
(c)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is no longer within a special flood hazard area, then the seller or sellers real estate licensee agent may mark No on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or sellers real estate licensee agent shall attach a copy of the Letter of Map Revision to the disclosure statement.
(d)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is within a special flood hazard area and the location of the letter has been posted pursuant to subdivision (g) of Section 8589.3 of the Government Code, then the seller or sellers real estate licensee agent shall mark Yes on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or sellers real estate licensee agent shall attach a copy of the Letter of Map Revision to the disclosure statement.
(e)The disclosure required pursuant to this article may be provided by the seller and the sellers real estate licensee agent in the Local Option Real Estate Disclosure Statement described in Section 1102.6a, provided that the Local Option Real Estate Disclosure Statement includes substantially the same information and substantially the same warnings that are required by this section.
(f)(1)The legal effect of a consultants report delivered to satisfy the exemption provided by Section 1103.4 is not changed when it is accompanied by a Natural Hazard Disclosure Statement.
(2)A consultants report shall always be accompanied by a completed and signed Natural Hazard Disclosure Statement.
(3)In a disclosure statement required by this section, a real estate licensee an agent and third-party provider may cause his or her name to be preprinted in lieu of an original signature in the portions of the form reserved for signatures. The use of a preprinted name shall not change the legal effect of the acknowledgment.
(g)The disclosure required by this article is only a disclosure between the seller, the sellers real estate licensees, agents, and the prospective buyer, and shall not be used by any other party, including, but not limited to, insurance companies, lenders, or governmental agencies, for any purpose.
(h)In any transaction in which a seller has accepted, prior to June 1, 1998, an offer to purchase, the seller, or his or her real estate licensee agent shall be deemed to have complied with the requirement of subdivision (a) if the seller or real estate licensee agent delivers to the prospective buyer a statement that includes substantially the same information and warning as the Natural Hazard Disclosure Statement.
SEC. 22.SEC. 21.Section 1103.3 of the Civil Code is amended to read:1103.3.(a)The seller of any real property subject to this article shall deliver to the prospective buyer the written statement required by this article, as follows:
(1)In the case of a sale, as soon as practicable before transfer of title.
(2)In the case of sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before the prospective buyers execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(b)The seller shall indicate compliance with this article either on the real property sales contract, the lease, any addendum attached thereto, or on a separate document.
(c)If any disclosure, or any material amendment of any disclosure, required to be made pursuant to this article is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person or five days after delivery by deposit in the mail or delivery of an electronic record, mail, to terminate his or her offer by delivery of a written notice of termination to the seller or the sellers real estate licensee. agent.
SEC. 23.SEC. 22.Section 1103.4 of the Civil Code is amended to read:1103.4.(a)Neither the seller nor any listing licensee agent or buyers licensee agent shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or the listing licensee agent or selling buyers licensee agent and was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting the information.
(b)The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller, listing licensee, agent, and buyers licensee agent of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, or expert in natural hazard discovery dealing with matters within the scope of the professionals license or expertise shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral. In responding to that request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1103.2 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable.
(1)In responding to the request, the expert shall determine whether the property is within an airport influence area as defined in subdivision (b) of Section 11010 of the Business and Professions Code. If the property is within an airport influence area, the report shall contain the following statement:
NOTICE OF AIRPORT IN VICINITY | |
This property is presently located in the vicinity of an |
(2)In responding to the request, the expert shall determine whether the property is within the jurisdiction of the San Francisco Bay Conservation and Development Commission,
as defined in Section 66620 of the Government Code. If the property is within the commissions jurisdiction, the report shall contain the following notice:
NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION JURISDICTION
This property is located within the jurisdiction of the San Francisco Bay Conservation and Development Commission. Use and development of property within the commissions jurisdiction may be subject to special regulations, restrictions, and permit requirements. You may wish to investigate and determine whether they are acceptable to you and your intended use of the property before you complete your transaction.
(3)In responding to the request, the expert shall determine whether the property is presently located within one mile of a parcel of real property designated as Prime Farmland, Farmland of Statewide Importance, Unique Farmland, Farmland of
Local Importance, or Grazing Land on the most current Important Farmland Map issued by the California Department of Conservation, Division of Land Resource Protection, utilizing solely the county-level GIS map data, if any, available on the Farmland Mapping and Monitoring Program Web site. If the residential property is within one mile of a designated farmland area, the report shall contain the following notice:
NOTICE OF RIGHT TO FARM
This property is located within one mile of a farm or ranch land designated on the current county-level GIS Important Farmland Map, issued by the California Department of Conservation, Division of Land Resource Protection. Accordingly, the property may be subject to inconveniences or discomforts resulting from agricultural operations that are a normal and necessary aspect of living in a community with a strong rural character and a healthy agricultural sector. Customary
agricultural practices in farm operations may include, but are not limited to, noise, odors, dust, light, insects, the operation of pumps and machinery, the storage and disposal of manure, bee pollination, and the ground or aerial application of fertilizers, pesticides, and herbicides. These agricultural practices may occur at any time during the 24-hour day. Individual sensitivities to those practices can vary from person to person. You may wish to consider the impacts of such agricultural practices before you complete your purchase. Please be advised that you may be barred from obtaining legal remedies against agricultural practices conducted in a manner consistent with proper and accepted customs and standards pursuant to Section 3482.5 of the Civil Code or any pertinent local ordinance.
(4)In responding to the request, the expert shall determine, utilizing map coordinate data made available by the Office of Mine Reclamation, whether the property is presently located within one mile of a mine operation for which map coordinate data has been reported to the director pursuant to Section 2207 of the Public Resources Code. If the expert determines, from the available map coordinate data, that the residential property is located within one mile of a mine operation, the report shall contain the following notice:
NOTICE OF MINING OPERATIONS:
This property is located within one mile of a mine operation for which the mine owner or operator has reported mine location data to the Department of Conservation pursuant to Section 2207 of the Public Resources Code. Accordingly, the property may be subject to inconveniences resulting from mining operations. You may wish to consider the impacts of these practices before you complete your transaction.
SEC. 24.SEC. 23.Section 1103.5 of the Civil Code is amended to read:1103.5.(a)After a seller and his or her real estate licensee agent comply with Section 1103.2, they shall be relieved of further duty under this article with respect to those items of information. The seller and his or her real estate licensee agent shall not be required to provide notice to the prospective buyer if the information provided subsequently becomes inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence, unless the seller or real estate licensee agent has actual knowledge that the information has become inaccurate.
(b)If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence subsequent to the delivery of the required disclosures, the inaccuracy resulting therefrom does not constitute a violation of this article.
SEC. 25.SEC. 24.Section 1103.8 of the Civil Code is amended to read:1103.8.(a)The specification of items for disclosure in this article does not limit or abridge any obligation for disclosure created by any other provision of law or that may exist in order to avoid fraud, misrepresentation, or deceit in the sale transaction. The Legislature does not intend to affect the existing obligations of the parties to a real estate contract, or their licensees, agents, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical condition of the property and previously received reports of physical inspection noted on the disclosure form provided pursuant to Section 1102.6 or 1102.6a.
(b)Nothing in this article shall be construed to change the duty of a real estate licensee broker or salesperson pursuant to Section 2079.
SEC. 26.SEC. 25.Section 1103.9 of the Civil Code is amended to read:1103.9.Any disclosure made pursuant to this article may be amended in writing by the seller or his or her real estate licensee, agent, but the amendment shall be subject to Section 1103.3.
SEC. 27.SEC. 26.Section 1103.12 of the Civil Code is amended to read:1103.12.(a)In a real estate transaction subject to this article, a buyers licensee broker or a dual licensee broker shall, except as otherwise provided in this article, deliver the disclosure required by this article to the buyer, unless the seller has given other written instructions for delivery. If there is only one real estate broker in a transaction subject to this article, that real estate licensee broker shall deliver the disclosure required by this article to the buyer. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.
(b)If a licensed real estate broker responsible for delivering the disclosures under this section cannot obtain the disclosure document required and does not have written assurance from the buyer that the disclosure has been received, the broker shall advise the buyer in writing of his or her rights to the disclosure. A licensed real estate broker responsible for delivering disclosures under this section shall maintain a record of the action taken to effect compliance in accordance with Section 10148 of the Business and Professions Code.
SEC. 28.SEC. 27.Section 1103.14 of the Civil Code is repealed.SEC. 29.SEC. 28.Section 2079 of the Civil Code is amended to read:2079.(a)It is the duty of a real estate licensee, broker or salesperson, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to a prospective buyer of residential real property comprising one to four dwelling units, or a manufactured home as defined in Section 18007 of the Health and Safety Code, to conduct a reasonably competent and diligent visual inspection of the property offered for sale and to disclose to that prospective buyer all facts materially affecting the value or desirability of the property that an investigation would reveal, if that licensee broker has a written contract with the seller to find or obtain a buyer or is a broker who acts in cooperation with that licensee broker to find and obtain a buyer.
(b)It is the duty of a real estate licensee, broker or salesperson, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to comply with this section and any regulations imposing standards of professional conduct adopted pursuant to Section 10080 of the Business and Professions Code with reference to Sections 10176 and 10177 of the Business and Professions Code.
SEC. 30.SEC. 29.Section 2079.6 of the Civil Code is amended to read:2079.6.This article does not apply to sales which are required to be preceded by the furnishing, to a prospective buyer, of a copy of a public report pursuant to Section 11018.1 or Section 11234 of the Business and Professions Code and sales that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code, unless the property has been previously occupied.
SEC. 31.SEC. 30.Section 2079.7 of the Civil Code is amended to read:2079.7.(a)If a consumer information booklet described in Section 10084.1 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 of the Civil Code, or manufactured housing, as defined in Section 18007 of the Health and Safety Code, a seller or licensee broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, common environmental hazards, as described in the booklet, that can affect real property.
(b)Notwithstanding subdivision (a), nothing in this section either increases or decreases the duties, if any, of sellers or licensees, including brokers, including, but not limited to, the duties of a seller or licensee broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or Section 25359.7 of the Health and Safety Code, or alters the duty of a seller or licensee broker to disclose the existence of known environmental hazards on or affecting the real property.
SEC. 32.SEC. 31.Section 2079.8 of the Civil Code is amended to read:2079.8.(a)If a Homeowners Guide to Earthquake Safety described in Section 10149 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or licensee broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers or licensees, brokers, including, but not limited to, the duties of a seller or licensee broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, or alters the duty of a seller or licensee broker to disclose the existence of known hazards on or affecting the real property.
SEC. 33.SEC. 32.Section 2079.9 of the Civil Code is amended to read:2079.9.(a)If a Commercial Property Owners Guide to Earthquake Safety described in Section 10147 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or licensee broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers, their real estate licensees brokers or agents under this article or under Chapter 7.5 (commencing with Section 2621) or Chapter 7.8 (commencing with Section 2690) of Division 2 of the Public Resources Code, or alters the duty of a seller or real estate licensee seller, agent, or broker to disclose the existence of known hazards on or affecting the real property.
SEC. 34.SEC. 33.Section 2079.10 of the Civil Code is amended to read:2079.10.(a)If the informational booklet published pursuant to Section 25402.9 of the Public Resources Code, concerning the statewide home energy rating program adopted pursuant to Section 25942 of the Public Resources Code, is delivered to a buyer in connection with the sale of real property, including, but not limited to, property specified in Section 1102, manufactured homes as defined in Section 18007 of the Health and Safety Code, and property subject to Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, the seller or licensee broker is not required to provide information additional to that contained in the booklet concerning home energy ratings, and the information in the booklet shall be deemed to be adequate to inform the buyer about the existence of a statewide home energy rating program.
(b)Notwithstanding subdivision (a), nothing in this section alters any existing duty of the seller or licensee broker under any other law including, but not limited to, the duties of a seller or licensee broker under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, or Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, to disclose information concerning the existence of a home energy rating program affecting the real property.
(c)If the informational booklet or materials described in Section 375.5 of the Water Code concerning water conservation and water conservation programs are delivered to a buyer in connection with the sale of real property, including property described in subdivision (a), the seller or licensee broker is not required to provide information concerning water conservation and water conservation programs that is additional to that contained in the booklet or materials, and the information in the booklet or materials shall be deemed to be adequate to inform the buyer about water conservation and water conservation programs.
SEC. 35.SEC. 34.Section 2079.10.5 of the Civil Code is amended to read:2079.10.5.(a)Every contract for the sale of residential real property entered into on or after July 1, 2013, shall contain, in not less than 8-point type, a notice as specified below:
NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES
This notice is being provided simply to inform you that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via the National Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at http://www.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS Internet Web site.
(b)Upon delivery of the notice to the buyer of the real property, the seller or broker is not required to provide information in addition to that contained in the notice regarding gas and hazardous liquid transmission pipelines in subdivision (a). The information in the notice shall be deemed to be adequate to inform the buyer about the existence of a statewide database of the locations of gas and hazardous liquid transmission pipelines and information from the database regarding those locations.
(c)Nothing in this section shall alter any existing duty under any other statute or decisional law imposed upon the seller or broker, including, but not limited to, the duties of a seller or broker under this article, or the duties of a seller or licensee broker under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 36.SEC. 35.Section 2079.10a of the Civil Code is amended to read:2079.10a.(a)Every lease or rental agreement for residential real property entered into on or after July 1, 1999, and every contract for the sale of residential real property comprised of one to four dwelling units entered into on or after that date, shall contain, in not less than 8-point type, a notice as specified in paragraph (1), (2), or (3).
(1)A contract entered into by the parties on or after July 1, 1999, and before September 1, 2005, shall contain the following notice:
Notice: The California Department of Justice, sheriffs departments, police departments serving jurisdictions of 200,000 or more, and many other local law enforcement authorities maintain for public access a database of the locations of persons required to register pursuant to subdivision (a) of Section 290.4 of the Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice also maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a 900 telephone service. Callers shall have specific information about individuals they are checking. Information regarding neighborhoods is not available through the 900 telephone service.
(2)A contract entered into by the parties on or after September 1, 2005, and before April 1, 2006, shall contain either the notice specified in paragraph (1) or the notice specified in paragraph (3).
(3)A contract entered into by the parties on or after April 1, 2006, shall contain the following notice:
Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offenders criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides.
(b)Subject to subdivision (c), upon delivery of the notice to the lessee or buyer of the real property, the lessor, seller, or broker is not required to provide information in addition to that contained in the notice regarding the proximity of registered sex offenders. The information in the notice shall be deemed to be adequate to inform the lessee or buyer about the existence of a statewide database of the locations of registered sex offenders and information from the database regarding those locations. The information in the notice shall not give rise to any cause of action against the disclosing party by a registered sex offender.
(c)Notwithstanding subdivisions (a) and (b), nothing in this section shall alter any existing duty of the lessor, seller, or licensee broker under any other statute or decisional law including, but not limited to, the duties of a lessor, seller, or broker under this article, or the duties of a seller or licensee broker under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 37.Section 2079.13 of the Civil Code is repealed.SEC. 38.Section 2079.13 is added to the Civil Code, to read:2079.13.(a)For purposes of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.(b)Notwithstanding subdivision (a), for the purposes of Sections 2079 to 2079.6, inclusive, and Sections 2079.9 to 2079.24, inclusive, owners and managers of multifamily residential properties improved by more than four residential units are not sellers and a lease of that property does not constitute a sale.SEC. 36.Section 2079.13 of the Civil Code is amended to read:2079.13.As used in Sections 2079.7 and 2079.14 to 2079.24, inclusive, the following terms have the following meanings:
(a)Agent means a person acting under provisions of Title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained.
(b)Associate licensee means a person who is licensed as a real estate broker or salesperson under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code and who is either licensed under a broker or has entered into a written contract with a broker to act as the brokers agent in connection with acts requiring a real estate license and to function under the brokers supervision in the capacity of an associate licensee.
The agent in the real property transaction bears responsibility for his or her associate licensees who perform as agents of the agent. When an associate licensee owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by the broker for whom the associate licensee functions.
(c)Buyer means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. Buyer includes vendee or lessee. lessee of real property.
(d)Commercial real property means all real property in the state, except single-family residential real property, dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, mobilehomes, as defined in Section 798.3, or recreational vehicles, as defined in Section 799.29.
(e)Dual agent means an agent acting, either directly or through an associate licensee, as agent for both the seller and the buyer in a real property transaction.
(f)Listing agreement means a contract between an owner of real property and an agent, by which the agent has been authorized to sell the real property or to find or obtain a buyer.
(g)Listing agent means a person who has obtained a listing of real property to act as an agent for compensation.
(h)Listing price is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the listing agent.
(i)Offering price is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property.
(j)Offer to purchase means a written contract executed by a buyer acting through a selling agent that becomes the contract for the sale of the real property upon acceptance by the seller.
(k)Real property means any estate specified by subdivision (1) or (2) of Section 761 in property that constitutes or is improved with one to four dwelling units, any commercial real property, any leasehold in these types of property exceeding one years duration, and mobilehomes, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code.
(l)Real property transaction means a transaction for the sale of real property in which an agent is employed by one or more of the principals to act in that transaction, and includes a listing or an offer to purchase.
(m)Sell, sale, or sold refers to a transaction for the transfer of real property from the seller to the buyer and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one years duration.
(n)Seller means the transferor in a real property transaction and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. Seller includes both a vendor and a lessor. lessor of real property.
(o)Selling agent means a listing agent who acts alone, or an agent who acts in cooperation with a listing agent, and who sells or finds and obtains a buyer for the real property or an agent who locates property for a buyer or who finds a buyer for a property for which no listing exists and presents an offer to purchase to the seller. and buyers agent mean an agent who represents a buyer in a real property transaction.
(p)Subagent means a person to whom an agent delegates agency powers as provided in Article 5 (commencing with Section 2349) of Chapter 1 of Title 9. However, subagent does not include an associate licensee who is acting under the supervision of an agent in a real property transaction.SEC. 39.SEC. 37.Section 2079.14 of the Civil Code is amended to read:2079.14.A real estate licensee Listing agents and buyers agents shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and, except as provided in subdivision (c), and shall obtain a signed acknowledgment of receipt from that seller or buyer, except as provided in this section or Section 2079.15, as follows:
(a)The sellers licensee, listing agent, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement.
(b)The buyers licensee agent shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyers offer to purchase. If the offer to purchase is not prepared by the buyers licensee, agent, the buyers licensee agent shall present the disclosure form to the buyer not later than the next business day after receiving the offer to purchase from the buyer.
SEC. 40.SEC. 38.Section 2079.15 of the Civil Code is amended to read:2079.15.In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the real estate licensee, agent shall set forth, sign, and date a written declaration of the facts of the refusal.
SEC. 41.Section 2079.16 of the Civil Code is amended to read:2079.16.The disclosure form required by Section 2079.14 shall contain at a minimum the following:DISCLOSURE REGARDING REAL ESTATE AGENCY RELATIONSHIP WITH LICENSEES(As required by Section 2079.14 of the Civil Code)When you enter into a relationship with a real estate licensee regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the licensee in the transaction.SELLERS LICENSEEA Sellers licensee under a listing agreement with the Seller acts as the licensee for the Seller only. A Sellers licensee has the following affirmative obligations: To the Seller:A fiduciary duty of care, integrity, honesty, and loyalty in dealings with the Seller. To the Buyer and the Seller: (a)Diligent exercise of reasonable skill and care in performance of the licensees duties.(b)A duty of honest and fair dealing and good faith.(c)A duty to disclose all facts known to the licensee materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.A Sellers licensee may have other listing agreements with other Sellers. The affirmative duties to the Buyer and Seller set forth above in (a), (b) and (c) do not obligate a licensee to reveal to either party any confidential information obtained from the other party or from other clients. Confidential information includes, but is not limited to, facts relating to the partys financial position, motivations, bargaining position, or other personal information that may impact price, such as that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.BUYERS LICENSEE The Buyers licensee may also be providing services to other Buyers in regard to the same or different properties. A licensee can, with the Buyers agreement, agree to act as licensee for the Buyer and not the Seller. The Buyers licensee may receive compensation for services rendered, either in full or in part from the Seller, but that does not make the Buyers licensee the Sellers licensee. A licensee acting for a Buyer has the following affirmative obligations:To the Buyer:A fiduciary duty of care, integrity, honesty, and loyalty in dealings with the Buyer.To the Buyer and the Seller: (a)Diligent exercise of reasonable skill and care in performance of the licensees duties.(b)A duty of honest and fair dealing and good faith.(c)A duty to disclose all facts known to the real estate licensee materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.The affirmative duties to the Buyer and Seller set forth above in (a), (b) and (c) do not obligate a licensee to reveal to either party any confidential information obtained from the other party or from other clients. Confidential information includes, but is not limited to, facts relating to the partys financial position, motivations, bargaining position, or other personal information that may impact price, such as that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.LICENSEE REPRESENTING BOTH SELLER AND BUYERA real estate licensee, either acting directly or through one or more associate licensees, can legally represent both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.In a dual broker or dual licensee situation, the dual broker and dual licensee have the following affirmative obligations to both the Seller and the Buyer:(a)A fiduciary duty of care, integrity, honesty and loyalty in the dealings with either the Seller or the Buyer.(b)Other duties to the Seller and the Buyer as stated above in their respective sections.In representing both Seller and Buyer, the dual broker or dual licensee may not, without the express permission of the respective party, disclose to the other party in that transaction any confidential information obtained from the other party that does not involve the affirmative duties set forth above in (a) and (b). Confidential information includes, but is not limited to, facts relating to the partys financial position, motivations, bargaining position, or other personal information that may impact price such as the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.CONSUMER RESPONSIBILITYOnce you have decided on the offer you wish to make or accept, you will receive a confirmation of the licensee relationship. Please pay attention to that confirmation to make sure you are comfortable with that relationship and it reflects your understanding of it.The above duties of the licensee in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests including reading all documents, reports, and disclosures. The Buyer has a duty to exercise reasonable care to protect himself or herself including obtaining and considering those facts which are known to or within the diligent attention and observation of the Buyer. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate licensee is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional. Real Estate Broker(date)Buyer/Seller(date)(Signature) Salesperson or Broker Associate(date)Buyer/Seller(date)(Signature)(Signature)SEC. 42.SEC. 39.Section 2079.17 of the Civil Code is amended to read:2079.17.(a)As soon as practicable, the buyers licensee agent shall disclose to the buyer and seller whether the licensee agent is acting in the real property transaction as the buyers licensee, agent, or as a dual licensee agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the buyers licensee agent prior to or coincident with execution of that contract by the buyer and the seller, respectively.
(b)As soon as practicable, the sellers licensee agent shall disclose to the seller whether the sellers licensee agent is acting in the real property transaction as the sellers licensee, agent, or as a dual broker agent representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the sellers licensee agent prior to or coincident with the execution of that contract by the seller.
(c)The confirmation required by subdivisions (a) and (b) shall be in the following form:
(Name of Sellers Broker, Brokerage firm and license number) is the broker of (check one): | |
[]the seller; or | |
[]both the buyer and seller. (dual broker) | |
(Name of Sellers Licensee Agent and license number) is (check one): | |
[]is the Sellers Licensee. Agent. (salesperson or broker associate) | |
[]is both the Buyers and Sellers Licensee. Agent. (dual licensee agent) | |
(Name of Buyers Broker, Brokerage firm and license number) is the broker of (check one): | |
[]the buyer; or | |
[]both the buyer and seller. (dual broker) | |
(Name of Buyers Licensee Agent and license number) is (check one): | |
[]the Buyers Licensee. Agent. (salesperson or broker associate) | |
[]both the Buyers and Sellers Licensee. Agent. (dual licensee agent) |
(d)The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. A licensees An agents duty to provide disclosure and confirmation of representation in this section may be performed by a real estate salesperson or broker associate affiliated with that broker.
SEC. 43.SEC. 40.Section 2079.18 of the Civil Code is repealed.SEC. 44.Section 2079.19 of the Civil Code is amended to read:2079.19.The payment of compensation or the obligation to pay compensation to a real estate licensee by the seller or buyer is not necessarily determinative of a particular agency relationship between a real estate licensee and the seller or buyer. Buyers and sellers may have a relationship with a real estate licensee established and governed by a written agreement or an agreement for services for licensed activity without an agency relationship. A sellers licensee and a buyers licensee may agree to share any compensation or commission paid, or any right to any compensation or commission for which an obligation arises as the result of a real estate transaction, and the terms of any such agreement shall not necessarily be determinative of a particular relationship.SEC. 45.Section 2079.20 of the Civil Code is amended to read:2079.20.Nothing in this article prevents a licensee from selecting a specific form of agency relationship not specifically prohibited by this article if the requirements of Section 2079.14 and Section 2079.17 are complied with.SEC. 46.Section 2079.21 of the Civil Code is repealed.SEC. 47.Section 2079.21 is added to the Civil Code, to read:2079.21.A dual licensee may not, without the express permission of a client, disclose to the other client any confidential information obtained from the other client that does not involve the affirmative duties set forth above. Confidential information includes, but is not limited to, facts relating to the clients financial position, motivations, bargaining position, or other personal information that may impact price such as the Seller will accept a price less than the listing price or that the buyer will pay a price greater than the price offered.SEC. 41.Section 2079.21 of the Civil Code is amended to read:2079.21.A dual agent shall not disclose to the buyer that the seller is willing to sell the property at a price less than the listing price, without the express written consent of the seller. A dual agent shall not disclose to the seller that the buyer is willing to pay a price greater than the offering price, without the express written consent of the buyer.2079.21.(a)A dual agent may not, without the express permission of the seller, disclose to the buyer any confidential information obtained from the seller.
(b)A dual agent may not, without the express permission of the buyer, disclose to the seller any confidential information obtained from the buyer.
(c)Confidential information means facts relating to the clients financial position, motivations, bargaining position, or other personal information that may impact price, such as the seller is willing to accept a price less than the listing price or the buyer is willing to pay a price greater than the price offered.
This(d)This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price.
SEC. 48.SEC. 42.Section 2079.22 of the Civil Code is amended to read:2079.22.Nothing in this article precludes a sellers licensee agent from also being a buyers licensee. agent. If a seller or buyer in a transaction chooses to not be represented by a licensee, an agent, that does not, of itself, make that licensee agent a dual licensee. agent.
SEC. 49.Section 2079.23 of the Civil Code is amended to read:2079.23.(a)A contract between the principal and real estate licensee may be modified or altered to change the relationship at any time before the performance of the act which is the object of the licensee services with the written consent of the parties to the relationship.(b)A lender or an auction company retained by a lender to control aspects of a transaction of real property subject to this part, including validating the sales price, shall not require, as a condition of receiving the lenders approval of the transaction, the homeowner or any licensee to defend or indemnify the lender or auction company from any liability alleged to result from the actions of the lender or auction company. Any clause, provision, covenant, or agreement purporting to impose an obligation to defend or indemnify a lender or an auction company in violation of this subdivision is against public policy, void, and unenforceable.SEC. 50.Section 2079.24 of the Civil Code is amended to read:2079.24.Nothing in this article shall be construed to either diminish the duty of disclosure owed to buyers and sellers by licensees including their broker associates, salespersons, and employees or to relieve licensees, including their broker associates, salespersons, and employees from liability for their conduct in connection with acts governed by this article or for any breach of a fiduciary duty or a duty of disclosure.SEC. 51.SEC. 43.Nothing in this act nor in Assembly Bill 749 of the 201718 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciarys responsibilities and obligations to disclose information relative to a real estate transaction pursuant to Article 6 (commencing with Section 1086) of Chapter 1 of Title 4 of Part 4 of Division 2 of, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of, or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3 of, the Civil Code.
SEC. 52.SEC. 44.This act shall not become operative unless Assembly Bill 749 of the 201718 Regular Session, relating to real estate, is enacted and becomes effective on January 1, 2018. 2019.
For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code apply.
SEC. 2.Section 1087 of the Civil Code is amended to read:1087.A multiple listing service (MLS) is a facility of cooperation of real estate brokers and appraisers, operating through an intermediary that does not itself act as a real estate licensee or appraiser, through which real estate brokers establish express or implied contracts for compensation between real estate brokers that are MLS participants in accordance with its MLS rules with respect to listed properties, properties in a listing agreement, or that may be used by real estate licensees and appraisers, pursuant to the rules of the service, to prepare market evaluations and appraisals of real property.
SEC. 3.Section 1088 of the Civil Code is amended to read:1088.A listing may not be placed in a multiple listing service unless authorized or directed by the seller in the listing.
If a real estate licensee or appraiser places a listing or other information in the multiple listing service, that real estate licensee or appraiser shall be responsible for the truth of all representations and statements made by the real estate licensee or appraiser of which that real estate licensee or appraiser had knowledge or reasonably should have had knowledge to anyone injured by their falseness or inaccuracy.
SEC. 4.Section 1089 of the Civil Code is repealed.SEC. 5.Section 1090 of the Civil Code is amended to read:1090.Nothing in this article shall preclude a listing licensee from also being the buyers licensee.
SEC. 6.Section 1102 of the Civil Code is amended to read:1102.(a)Except as provided in Section 1102.2, this article applies to any sale of residential property.
(b)For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(c)Any waiver of the requirements of this article is void as against public policy.
SEC. 7.Section 1102.1 of the Civil Code is amended to read:1102.1.(a)In enacting Chapter 817 of the Statutes of 1994, it was the intent of the Legislature to clarify and facilitate the use of the real estate disclosure statement, as specified in Section 1102.6. The Legislature intended the statement to be used by sellers making disclosures required under this article and by real estate licensees making disclosures required by Section 2079 on the real estate licensees portion of the real estate disclosure statement, in transfers subject to this article. In transfers not subject to this article, real estate licensees may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their real estate licensees, to disclose any known fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a, and that nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079.
It is also the intent of the Legislature that the delivery of a real estate transfer disclosure statement may not be waived in an as is sale, as held in Loughrin v. Superior Court (1993) 15 Cal. App. 4th 1188.
(b)In enacting Chapter 677 of the Statutes of 1996, it was the intent of the Legislature to clarify and facilitate the use of the manufactured home and mobilehome transfer disclosure statement applicable to the resale of a manufactured home or mobilehome pursuant to subdivision (b) of Section 1102. The Legislature intended the statements to be used by transferors making disclosures required under this article and by real estate licensees making disclosures required by Section 2079 on the real estate licensees portion of the disclosure statement and as required by Section 18046 of the Health and Safety Code on the dealers portion of the manufactured home and mobilehome transfer disclosure statement, in transfers subject to this article. In transfers not subject to this article, real estate licensees may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their real estate licensees, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a or to affect the existing obligations of the parties to a manufactured home or mobilehome purchase contract, and nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079 or the duty of a manufactured home or mobilehome dealer or salesperson pursuant to Section 18046 of the Health and Safety Code.
It is also the intent of the Legislature that the delivery of a mobilehome transfer disclosure statement may not be waived in an as is sale.
(c)It is the intent of the Legislature that manufactured home and mobilehome dealers and salespersons and real estate brokers and salespersons use the form provided pursuant to Section 1102.6d. It is also the intent of the Legislature for sellers of manufactured homes or mobilehomes who are neither manufactured home dealers or salespersons nor real estate brokers or salespersons to use the Manufactured Home/Mobilehome Transfer Disclosure Statement contained in Section 1102.6d.
SEC. 8.Section 1102.2 of the Civil Code is amended to read:1102.2.This article does not apply to the following:
(a)Sales that are required to be preceded by the furnishing to a prospective buyer of a copy of a public report pursuant to Section 11018.1 of the Business and Professions Code and transfers that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code.
(b)Sales pursuant to court order, including, but not limited to, sales ordered by a probate court in the administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, transfers by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.
(c)Sales to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure, sales to the legal owner or lienholder of a manufactured home or mobilehome by a registered owner or successor in interest who is in default, or sales by reason of any foreclosure of a security interest in a manufactured home or mobilehome.
(d)Sales by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and he or she is a former owner of the property or was an occupant in possession of the property within the preceding year.
(e)Sales from one coowner to one or more other coowners.
(f)Sales made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors.
(g)Sales between spouses resulting from a judgment of dissolution of marriage or of legal separation or from a property settlement agreement incidental to that judgment.
(h)Sales by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(i)Sales under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(j)Sales or exchanges to or from any governmental entity.
(k)Sales of any portion of a property not constituting residential property with one to four dwelling units.
SEC. 9.Section 1102.3 of the Civil Code is amended to read:1102.3.The seller of any real property subject to this article shall deliver to the prospective buyer the completed written statement required by this article, as follows:
(a)In the case of a sale, as soon as practicable before transfer of title.
(b)In the case of sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(c)With respect to any sale subject to subdivision (a) or (b), the seller shall indicate compliance with this article on the real property sales contract, the lease, or any addendum attached thereto or on a separate document.
If any disclosure, or any material amendment of any disclosure, required to be made by this article, is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person or five days after delivery by deposit in the mail or delivery of an electronic record, to terminate his or her offer by delivery of a written notice of termination to the seller or the sellers licensee. The disclosure is complete when Sections I, II and III in the form described in Section 1102.6 are completed and delivered. A real estate licensee may complete his or her portion of the required disclosure by providing all of the information on the licensees inspection disclosure set forth in Section 1102.6.
SEC. 10.Section 1102.4 of the Civil Code is amended to read:1102.4.(a)Neither the seller nor any listing licensee or buyers licensee shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or that listing or buyers licensee, was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting it.
(b)The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller or any listing or buyers licensee of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, structural pest control operator, contractor, or other expert, dealing with matters within the scope of the professionals license or expertise, shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral.
SEC. 11.Section 1102.5 of the Civil Code is amended to read:1102.5.If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any act, occurrence, or agreement subsequent to the delivery of the required disclosures, any inaccuracy resulting therefrom does not constitute a violation of this article. If at the time the disclosures are required to be made, an item of information required to be disclosed is unknown or not available to the seller, and the seller or his or her real estate licensee has made a reasonable effort to ascertain it, the seller may use an approximation of the information, provided the approximation is clearly identified as such, is reasonable, is based on the best information reasonably available to the seller or his or her real estate licensee, and is not used for the purpose of circumventing or evading this article.
SEC. 12.Section 1102.6a of the Civil Code is amended to read:1102.6a.(a)Any city or county may elect to require disclosures on the form set forth in subdivision (b) in addition to those disclosures required by Section 1102.6. However, this section does not affect or limit the authority of a city or county to require disclosures on a different disclosure form in connection with transactions subject to this article pursuant to an ordinance adopted prior to July 1, 1990.
(b)Disclosures required pursuant to this section pertaining to the property proposed to be sold, shall be set forth in, and shall be made on a copy of, the following disclosure form:
PRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE INSERTED(c)This section does not preclude the use of addenda to the form specified in subdivision (b) to facilitate the required disclosures. This section does not preclude a city or county from using the disclosure form specified in subdivision (b) for a purpose other than that specified in this section.
(d)(1)On and after January 1, 2005, if a city or county adopts a different or additional disclosure form pursuant to this section regarding the proximity or effects of an airport, the statement in that form shall contain, at a minimum, the information in the statement Notice of Airport in Vicinity found in Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255.
(2)On and after January 1, 2006, if a city or county does not adopt a different or additional disclosure form pursuant to this section, then the provision of an airport influence area disclosure pursuant to Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255, or if there is not a current airport influence map, a written disclosure of an airport within two statute miles, shall be deemed to satisfy any city or county requirements for the disclosure of airports in connection with sales of real property.
SEC. 13.Section 1102.6b of the Civil Code is amended to read:1102.6b.(a)This section applies to all sales of real property for which all of the following apply:
(1)The sale is subject to this article.
(2)The property being sold is subject to a continuing lien securing the levy of special taxes pursuant to the Mello-Roos Community Facilities Act (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code), to a fixed lien assessment collected in installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or to a contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code.
(3)A notice is not required pursuant to Section 53341.5 of the Government Code.
(b)In addition to any other disclosure required pursuant to this article, the seller of any real property subject to this section shall make a good faith effort to obtain a disclosure notice concerning the special tax as provided for in Section 53340.2 of the Government Code, or a disclosure notice concerning an assessment installment as provided in Section 53754 of the Government Code, from each local agency that levies a special tax pursuant to the Mello-Roos Community Facilities Act, or that collects assessment installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or a disclosure notice concerning the contractual assessment as provided in Section 5898.24 of the Streets and Highways Code, on the property being sold, and shall deliver that notice or those notices to the prospective buyer, as long as the notices are made available by the local agency.
(c)(1)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) by delivering a disclosure notice that is substantially equivalent and obtained from another source.
(2)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the assessments collected under the contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code by delivering a disclosure notice that is substantially equivalent and obtained from another source.
(3)For the purposes of this section, a substantially equivalent disclosure notice includes, but is not limited to, a copy of the most recent years property tax bill or an itemization of current assessment amounts applicable to the property.
(d)(1)Notwithstanding subdivision (c), the seller of real property subject to this section may satisfy the disclosure notice requirements of this section by delivering a disclosure notice obtained from a nongovernmental source that satisfies the requirements of paragraph (2).
(2)A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe a special tax pursuant to the Mello-Roos Community Facilities Act levied against the property or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy a special tax pursuant to the Mello-Roos Community Facilities Act against the property, and shall include the name of the Mello-Roos entity levying taxes against the property, the annual tax due for the Mello-Roos entity for the current tax year, the maximum tax that may be levied against the property in any year, the percentage by which the maximum tax for the Mello-Roos entity may increase per year, and the date until the tax may be levied against the property for the Mello-Roos entity and a contact telephone number, if available, for further information about the Mello-Roos entity. A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe special assessments and bonds pursuant to the Improvement Bond Act of 1915 levied against the property, or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy special assessments and bonds pursuant to the Improvement Bond Act of 1915 against the property, and shall include the name of the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915, the current annual tax on the property for the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915 and a contact telephone number, if available, for further information about the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915.
(3)This section does not change the ability to make disclosures pursuant to Section 1102.4 of the Civil Code.
(e)If a disclosure received pursuant to subdivision (b), (c), or (d) has been delivered to the buyer, a seller or his or her real estate licensee is not required to provide additional information concerning, and information in the disclosure shall be deemed to satisfy the responsibility of the seller or his or her real estate licensee to inform the buyer regarding the special tax or assessment installments and the district. Notwithstanding subdivision (b), (c), or (d), nothing in this section imposes a duty to discover a special tax or assessment installments or the existence of any levying district not actually known to the real estate licensees.
SEC. 14.Section 1102.6c of the Civil Code is amended to read:1102.6c.(a)In addition to any other disclosure required pursuant to this article, it shall be the sole responsibility of the seller of any real property subject to this article, or his or her real estate licensee, to deliver to the prospective buyer a disclosure notice that includes both of the following:
(1)A notice, in at least 12-point type or a contrasting color, as follows:
California property tax law requires the Assessor to revalue real property at the time the ownership of the property changes. Because of this law, you may receive one or two supplemental tax bills, depending on when your loan closes.
The supplemental tax bills are not mailed to your lender. If you have arranged for your property tax payments to be paid through an impound account, the supplemental tax bills will not be paid by your lender. It is your responsibility to pay these supplemental bills directly to the tax collector. If you have any question concerning this matter, please call your local tax collectors office.
(2)A title, in at least 14-point type or a contrasting color, that reads as follows: Notice of Your Supplemental Property Tax Bill.
(b)The disclosure notice requirements of this section may be satisfied by delivering a disclosure notice pursuant to Section 1102.6b that satisfies the requirements of subdivision (a).
SEC. 15.Section 1102.9 of the Civil Code is amended to read:1102.9.Any disclosure made pursuant to this article may be amended in writing by the seller or his or her real estate licensee, but the amendment shall be subject to Section 1102.3 or 1102.3a.
SEC. 16.Section 1102.12 of the Civil Code is amended to read:1102.12.(a)In a real estate transaction subject to this article, a buyers licensee or a dual licensee shall, except as otherwise provided in this article, deliver the disclosure required by this article to the buyer, unless the seller has given other written instructions for delivery. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.
(b)If a real estate licensee responsible for delivering the disclosures under this section cannot obtain the disclosure document required and does not have written assurance from the buyer that the disclosure has been received, the real estate licensee shall advise the buyer in writing of his or her rights to the disclosure. A real estate licensee responsible for delivering disclosures under this section shall maintain a record of the action taken to effect compliance in accordance with Section 10148 of the Business and Professions Code.
SEC. 17.Section 1102.14 of the Civil Code is repealed.SEC. 18.Section 1102.155 of the Civil Code is amended to read:1102.155.(a)(1)The seller of residential real property subject to this article shall disclose, in writing, that Section 1101.4 requires that California single-family residences be equipped with water-conserving plumbing fixtures on or before January 1, 2017, and shall disclose whether the property includes any noncompliant plumbing fixtures as defined in subdivision (c) of Section 1101.3.
(2)The seller shall affirm that this representation is that of the seller and not a representation of any real estate licensee, and that this disclosure is not intended to be part of any contract between the buyer and the seller. The seller shall further affirm that this disclosure is not a warranty of any kind by the seller or any real estate licensee representing any principal in the transaction and is not a substitute for any inspections or warranties that any principal may wish to obtain.
(b)This section shall become operative on January 1, 2017.
SEC. 19.Section 1103 of the Civil Code is amended to read:1103.(a)For purposes of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(b)Except as provided in Section 1103.1, this article applies to a sale, exchange, real property sales contract, as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any real property described in subdivision (d), or residential stock cooperative, improved with or consisting of not less than one nor more than four dwelling units.
(c)Except as provided in Section 1103.1, this article applies to a resale transaction entered into for a manufactured home, as defined in Section 18007 of the Health and Safety Code, that is classified as personal property intended for use as a residence, or a mobilehome, as defined in Section 18008 of the Health and Safety Code, that is classified as personal property intended for use as a residence, if the real property on which the manufactured home or mobilehome is located is real property described in subdivision (d).
(d)This article shall apply to the transactions described in subdivisions (b) and (c) only if the seller or his or her real estate licensee is required by one or more of the following to disclose the propertys location within a hazard zone:
(1)A person who is acting a real estate licensee for a seller of real property that is located within a special flood hazard area (any type Zone A or V) designated by the Federal Emergency Management Agency, or the seller if he or she is acting without a real estate licensee, shall disclose to any prospective buyer the fact that the property is located within a special flood hazard area if either:
(A)The seller, or the sellers real estate licensee, has actual knowledge that the property is within a special flood hazard area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the special flood hazard area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(2)A person who is acting as a real estate licensee for a seller of real property that is located within an area of potential flooding designated pursuant to Section 8589.5 of the Government Code, or the seller if he or she is acting without a real estate licensee, shall disclose to any prospective buyer the fact that the property is located within an area of potential flooding if either:
(A)The seller, or the sellers real estate licensee, has actual knowledge that the property is within an inundation area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the inundation area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(3)A seller of real property that is located within a very high fire hazard severity zone, designated pursuant to Section 51178 of the Government Code, shall disclose to any prospective buyer the fact that the property is located within a very high fire hazard severity zone and is subject to the requirements of Section 51182 of the Government Code if either:
(A)The seller or the sellers real estate licensee, has actual knowledge that the property is within a very high fire hazard severity zone.
(B)A map that includes the property has been provided to the local agency pursuant to Section 51178 of the Government Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the local agency.
(4)A person who is acting as a real estate licensee for a seller of real property that is located within an earthquake fault zone, designated pursuant to Section 2622 of the Public Resources Code, or the seller if he or she is acting without a real estate licensee, shall disclose to any prospective buyer the fact that the property is located within a delineated earthquake fault zone if either:
(A)The seller, or the sellers real estate licensee, has actual knowledge that the property is within a delineated earthquake fault zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2622 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(5)A person who is acting as a real estate licensee for a seller of real property that is located within a seismic hazard zone, designated pursuant to Section 2696 of the Public Resources Code, or the seller if he or she is acting without a real estate licensee shall disclose to any prospective buyer the fact that the property is located within a seismic hazard zone if either:
(A)The seller, or the sellers real estate licensee, has actual knowledge that the property is within a seismic hazard zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2696 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(6)A seller of real property that is located within a state responsibility area determined by the board, pursuant to Section 4125 of the Public Resources Code, shall disclose to any prospective buyer the fact that the property is located within a wildland area that may contain substantial forest fire risks and hazards and is subject to the requirements of Section 4291 of the Public Resources Code if either:
(A)The seller, or the sellers real estate licensee, has actual knowledge that the property is within a wildland fire zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 4125 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(d)(e)Any waiver of the requirements of this article is void as against public policy.
SEC. 20.Section 1103.1 of the Civil Code is amended to read:1103.1.(a)This article does not apply to the following sales:
(1)Sales pursuant to court order, including, but not limited to, sales ordered by a probate court in administration of an estate, sales pursuant to a writ of execution, sales by any foreclosure sale, sales by a trustee in bankruptcy, sales by eminent domain, and sales resulting from a decree for specific performance.
(2)Sales to a mortgagee by a mortgagor or successor in interest who is in default, sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, transfers by any foreclosure sale after default, any foreclosure sale after default in an obligation secured by a mortgage, sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, or sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure.
(3)Sales by a fiduciary in the course of the administration of a trust, guardianship, conservatorship, or decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and he or she is a former owner of the property or an occupant in possession of the property within the preceding year.
(4)Sales from one coowner to one or more other coowners.
(5)Sales made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the sellers.
(6)Sales between spouses resulting from a judgment of dissolution of marriage or of legal separation of the parties or from a property settlement agreement incidental to that judgment.
(7)Sales by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(8)Sales under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(9)Sales or exchanges to or from any governmental entity.
(b)Sales not subject to this article may be subject to other disclosure requirements, including those under Sections 8589.3, 8589.4, and 51183.5 of the Government Code and Sections 2621.9, 2694, and 4136 of the Public Resources Code. In sales not subject to this article, real estate licensees may make required disclosures in a separate writing.
SEC. 21.Section 1103.2 of the Civil Code is amended to read:1103.2.(a)The disclosures required by this article are set forth in, and shall be made on a copy of, the following Natural Hazard Disclosure Statement:
NATURAL HAZARD DISCLOSURE STATEMENT | |
This statement applies to the following property: | |
The seller and his or her real estate licensee(s) or a third-party consultant disclose the following information with the knowledge that even though this is not a warranty, prospective buyers may rely on this information in deciding whether and on what terms to purchase the subject property. Seller hereby authorizes any real estate licensee(s) representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. | |
The following are representations made by the seller and his or her real estate licensee(s) based on their knowledge and maps drawn by the state and federal governments. This information is a disclosure and is not intended to be part of any contract between the seller and buyer. | |
THIS REAL PROPERTY LIES WITHIN THE FOLLOWING | |
A SPECIAL FLOOD HAZARD AREA (Any type Zone A or V) designated by the Federal Emergency Management Agency. | |
Yes____ No ____Do not know and | |
AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code. | |
Yes____ No ____Do not know and | |
A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. | |
Yes____ No ____ | |
A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the states responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. | |
Yes____ No____ | |
AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. | |
Yes____ No____ | |
A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public | |
Yes (Landslide Zone)____________Yes (Liquefaction Zone) ______ No____Map not yet released by state ____ | |
THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER. | |
THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER. SELLER(S) AND BUYER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. | |
Signature of Seller(s) | Date |
Signature of Seller(s) | Date |
Sellers Licensee(s) | Date |
Sellers Licensee(s) | Date |
Check only one of the following: | |
Seller(s) and their real estate licensee(s) represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s) and agent(s). | |
Seller(s) and their real estate licensee(s) acknowledge that they have exercised good faith in the selection of a third-party report provider as required in Civil Code Section 1103.7, and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the independent third-party disclosure provider as a substituted disclosure pursuant to Civil Code Section 1103.4. Neither seller(s) nor their real estate licensee(s) (1) has independently verified the information contained in this statement and report or (2) is personally aware of any errors or inaccuracies in the information contained on the statement. This statement was prepared by the provider below: | |
Third-Party Disclosure Provider(s) | Date |
Buyer represents that he or she has read and understands this document. Pursuant to Civil Code Section 1103.8, the representations made in this Natural Hazard Disclosure Statement do not constitute all of the sellers or real estate licensees disclosure obligations in this transaction. | |
Signature of Buyer(s) | Date |
Signature of Buyer(s) | Date |
(b)If an earthquake fault zone, seismic hazard zone, very high fire hazard severity zone, or wildland fire area map or accompanying information is not of sufficient accuracy or scale that a reasonable person can determine if the subject real property is included in a natural hazard area, the seller or sellers real estate licensee shall mark Yes on the Natural Hazard Disclosure Statement. The sellers real estate licensee may mark No on the Natural Hazard Disclosure Statement if he or she attaches a report prepared pursuant to subdivision (c) of Section 1103.4 that verifies the property is not in the hazard zone. Nothing in this subdivision is intended to limit or abridge any existing duty of the seller or the sellers real estate licensees to exercise reasonable care in making a determination under this subdivision.
(c)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is no longer within a special flood hazard area, then the seller or sellers real estate licensee may mark No on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or sellers real estate licensee shall attach a copy of the Letter of Map Revision to the disclosure statement.
(d)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is within a special flood hazard area and the location of the letter has been posted pursuant to subdivision (g) of Section 8589.3 of the Government Code, then the seller or sellers real estate licensee shall mark Yes on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or sellers real estate licensee shall attach a copy of the Letter of Map Revision to the disclosure statement.
(e)The disclosure required pursuant to this article may be provided by the seller and the sellers real estate licensee in the Local Option Real Estate Disclosure Statement described in Section 1102.6a, provided that the Local Option Real Estate Disclosure Statement includes substantially the same information and substantially the same warnings that are required by this section.
(f)(1)The legal effect of a consultants report delivered to satisfy the exemption provided by Section 1103.4 is not changed when it is accompanied by a Natural Hazard Disclosure Statement.
(2)A consultants report shall always be accompanied by a completed and signed Natural Hazard Disclosure Statement.
(3)In a disclosure statement required by this section, a real estate licensee and third-party provider may cause his or her name to be preprinted in lieu of an original signature in the portions of the form reserved for signatures. The use of a preprinted name shall not change the legal effect of the acknowledgment.
(g)The disclosure required by this article is only a disclosure between the seller, the sellers real estate licensees, and the prospective buyer, and shall not be used by any other party, including, but not limited to, insurance companies, lenders, or governmental agencies, for any purpose.
(h)In any transaction in which a seller has accepted, prior to June 1, 1998, an offer to purchase, the seller, or his or her real estate licensee shall be deemed to have complied with the requirement of subdivision (a) if the seller or real estate licensee delivers to the prospective buyer a statement that includes substantially the same information and warning as the Natural Hazard Disclosure Statement.
SEC. 22.Section 1103.3 of the Civil Code is amended to read:1103.3.(a)The seller of any real property subject to this article shall deliver to the prospective buyer the written statement required by this article, as follows:
(1)In the case of a sale, as soon as practicable before transfer of title.
(2)In the case of sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before the prospective buyers execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(b)The seller shall indicate compliance with this article either on the real property sales contract, the lease, any addendum attached thereto, or on a separate document.
(c)If any disclosure, or any material amendment of any disclosure, required to be made pursuant to this article is delivered after the execution of an offer to purchase, the prospective buyer shall have three days after delivery in person or five days after delivery by deposit in the mail or delivery of an electronic record, to terminate his or her offer by delivery of a written notice of termination to the seller or the sellers real estate licensee.
SEC. 23.Section 1103.4 of the Civil Code is amended to read:1103.4.(a)Neither the seller nor any listing licensee or buyers licensee shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or the listing licensee or selling buyers licensee and was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting the information.
(b)The delivery of any information required to be disclosed by this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller, listing licensee, and buyers licensee of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, or expert in natural hazard discovery dealing with matters within the scope of the professionals license or expertise shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral.
(1)In responding to the request, the expert shall determine whether the property is within an airport influence area as defined in subdivision (b) of Section 11010 of the Business and Professions Code. If the property is within an airport influence area, the report shall contain the following statement:
NOTICE OF AIRPORT IN VICINITY | |
This property is presently located in the vicinity of an |
(2)In responding to the request, the expert shall determine whether the property is within the jurisdiction of the San Francisco Bay Conservation and Development Commission, as defined in Section 66620 of the Government Code. If the property is within the commissions jurisdiction, the report shall contain the following notice:
NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION JURISDICTION
This property is located within the jurisdiction of the San Francisco Bay Conservation and Development Commission. Use and development of property within the commissions jurisdiction may be subject to special regulations, restrictions, and permit
requirements. You may wish to investigate and determine whether they are acceptable to you and your intended use of the property before you complete your transaction.
(3)In responding to the request, the expert shall determine whether the property is presently located within one mile of a parcel of real property designated as Prime Farmland, Farmland of Statewide Importance, Unique Farmland, Farmland of Local Importance, or Grazing Land on the most current Important Farmland Map issued by the California Department of Conservation, Division of Land Resource Protection, utilizing solely the county-level GIS map data, if any, available on the Farmland Mapping and Monitoring Program Web site. If the residential property is within one mile of a designated farmland area, the report shall contain the following notice:
NOTICE OF RIGHT TO FARM
This property is located within one mile of a farm or ranch land designated on the current county-level GIS Important Farmland Map, issued by the California Department of Conservation, Division of Land Resource Protection. Accordingly, the property may be subject to inconveniences or discomforts resulting from agricultural operations that are a normal and necessary aspect of living in a community with a strong rural character and a healthy agricultural sector. Customary agricultural practices in farm operations may include, but are not limited to, noise, odors, dust, light, insects, the operation of pumps and machinery, the storage and disposal of manure, bee pollination, and the ground or aerial application of fertilizers, pesticides, and herbicides. These agricultural practices may occur at any time during the 24-hour day. Individual sensitivities to those practices can vary from person to person. You may wish to consider the impacts of such agricultural practices
before you complete your purchase. Please be advised that you may be barred from obtaining legal remedies against agricultural practices conducted in a manner consistent with proper and accepted customs and standards pursuant to Section 3482.5 of the Civil Code or any pertinent local ordinance.
(4)In responding to the request, the expert shall determine, utilizing map coordinate data made available by the Office of Mine Reclamation, whether the property is presently located within one mile of a mine operation for which map coordinate data has been reported to the director pursuant to Section 2207 of the Public Resources Code. If the expert determines, from the available map coordinate data, that the residential property is located within one mile of a mine operation, the report shall contain the following notice:
NOTICE OF MINING OPERATIONS:
This property is located within one mile of a mine operation for which the mine owner or operator has reported mine location data to the Department of Conservation pursuant to Section 2207 of the Public Resources Code. Accordingly, the property may be subject to inconveniences resulting from mining operations. You may wish to consider the impacts of these practices before you complete your transaction.
SEC. 24.Section 1103.5 of the Civil Code is amended to read:1103.5.(a)After a seller and his or her real estate licensee comply with Section 1103.2, they shall be relieved of further duty under this article with respect to those items of information. The seller and his or her real estate licensee shall not be required to provide notice to the prospective buyer if the information provided subsequently becomes inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence, unless the seller or real estate licensee has actual knowledge that the information has become inaccurate.
(b)If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence subsequent to the delivery of the required disclosures, the inaccuracy resulting therefrom does not constitute a violation of this article.
SEC. 25.Section 1103.8 of the Civil Code is amended to read:1103.8.(a)The specification of items for disclosure in this article does not limit or abridge any obligation for disclosure created by any other provision of law or that may exist in order to avoid fraud, misrepresentation, or deceit in the sale transaction. The Legislature does not intend to affect the existing obligations of the parties to a real estate contract, or their licensees, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical condition of the property and previously received reports of physical inspection noted on the disclosure form provided pursuant to Section 1102.6 or 1102.6a.
(b)Nothing in this article shall be construed to change the duty of a real estate licensee pursuant to Section 2079.
SEC. 26.Section 1103.9 of the Civil Code is amended to read:1103.9.Any disclosure made pursuant to this article may be amended in writing by the seller or his or her real estate licensee, but the amendment shall be subject to Section 1103.3.
SEC. 27.Section 1103.12 of the Civil Code is amended to read:1103.12.(a)In a real estate transaction subject to this article, a buyers licensee or a dual licensee shall, except as otherwise provided in this article, deliver the disclosure required by this article to the buyer, unless the seller has given other written instructions for delivery. If there is only one real estate broker in a transaction subject to this article, that real estate licensee shall deliver the disclosure required by this article to the buyer. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.
(b)If a licensed real estate broker responsible for delivering the disclosures under this section cannot obtain the disclosure document required and does not have written assurance from the buyer that the disclosure has been received, the broker shall advise the buyer in writing of his or her rights to the disclosure. A licensed real estate broker responsible for delivering disclosures under this section shall maintain a record of the action taken to effect compliance in accordance with Section 10148 of the Business and Professions Code.
SEC. 28.Section 1103.14 of the Civil Code is repealed.SEC. 29.Section 2079 of the Civil Code is amended to read:2079.(a)It is the duty of a real estate licensee, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to a prospective buyer of residential real property comprising one to four dwelling units, or a manufactured home as defined in Section 18007 of the Health and Safety Code, to conduct a reasonably competent and diligent visual inspection of the property offered for sale and to disclose to that prospective buyer all facts materially affecting the value or desirability of the property that an investigation would reveal, if that licensee has a written contract with the seller to find or obtain a buyer or is a broker who acts in cooperation with that licensee to find and obtain a buyer.
(b)It is the duty of a real estate licensee, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to comply with this section and any regulations imposing standards of professional conduct adopted pursuant to Section 10080 of the Business and Professions Code with reference to Sections 10176 and 10177 of the Business and Professions Code.
SEC. 30.Section 2079.6 of the Civil Code is amended to read:2079.6.This article does not apply to sales which are required to be preceded by the furnishing, to a prospective buyer, of a copy of a public report pursuant to Section 11018.1 or Section 11234 of the Business and Professions Code and sales that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code, unless the property has been previously occupied.
SEC. 31.Section 2079.7 of the Civil Code is amended to read:2079.7.(a)If a consumer information booklet described in Section 10084.1 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 of the Civil Code, or manufactured housing, as defined in Section 18007 of the Health and Safety Code, a seller or licensee is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, common environmental hazards, as described in the booklet, that can affect real property.
(b)Notwithstanding subdivision (a), nothing in this section either increases or decreases the duties, if any, of sellers or licensees, including but not limited to, the duties of a seller or licensee under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or Section 25359.7 of the Health and Safety Code, or alters the duty of a seller or licensee to disclose the existence of known environmental hazards on or affecting the real property.
SEC. 32.Section 2079.8 of the Civil Code is amended to read:2079.8.(a)If a Homeowners Guide to Earthquake Safety described in Section 10149 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or licensee is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers or licensees, including, but not limited to, the duties of a seller or licensee under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, or alters the duty of a seller or licensee to disclose the existence of known hazards on or affecting the real property.
SEC. 33.Section 2079.9 of the Civil Code is amended to read:2079.9.(a)If a Commercial Property Owners Guide to Earthquake Safety described in Section 10147 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or licensee is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers, their real estate licensees under this article or under Chapter 7.5 (commencing with Section 2621) or Chapter 7.8 (commencing with Section 2690) of Division 2 of the Public Resources Code, or alters the duty of a seller or real estate licensee to disclose the existence of known hazards on or affecting the real property.
SEC. 34.Section 2079.10 of the Civil Code is amended to read:2079.10.(a)If the informational booklet published pursuant to Section 25402.9 of the Public Resources Code, concerning the statewide home energy rating program adopted pursuant to Section 25942 of the Public Resources Code, is delivered to a buyer in connection with the sale of real property, including, but not limited to, property specified in Section 1102, manufactured homes as defined in Section 18007 of the Health and Safety Code, and property subject to Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, the seller or licensee is not required to provide information additional to that contained in the booklet concerning home energy ratings, and the information in the booklet shall be deemed to be adequate to inform the buyer about the existence of a statewide home energy rating program.
(b)Notwithstanding subdivision (a), nothing in this section alters any existing duty of the seller or licensee under any other law including, but not limited to, the duties of a seller or licensee under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, or Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, to disclose information concerning the existence of a home energy rating program affecting the real property.
(c)If the informational booklet or materials described in Section 375.5 of the Water Code concerning water conservation and water conservation programs are delivered to a buyer in connection with the sale of real property, including property described in subdivision (a), the seller or licensee is not required to provide information concerning water conservation and water conservation programs that is additional to that contained in the booklet or materials, and the information in the booklet or materials shall be deemed to be adequate to inform the buyer about water conservation and water conservation programs.
SEC. 35.Section 2079.10.5 of the Civil Code is amended to read:2079.10.5.(a)Every contract for the sale of residential real property entered into on or after July 1, 2013, shall contain, in not less than 8-point type, a notice as specified below:
NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES
This notice is being provided simply to inform you that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via the National Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at http://www.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS Internet Web site.
(b)Upon delivery of the notice to the buyer of the real property, the seller or broker is not required to provide information in addition to that contained in the notice regarding gas and hazardous liquid transmission pipelines in subdivision (a). The information in the notice shall be deemed to be adequate to inform the buyer about the existence of a statewide database of the locations of gas and hazardous liquid transmission pipelines and information from the database regarding those locations.
(c)Nothing in this section shall alter any existing duty under any other statute or decisional law imposed upon the seller or broker, including, but not limited to, the duties of a seller or broker under this article, or the duties of a seller or licensee under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 36.Section 2079.10a of the Civil Code is amended to read:2079.10a.(a)Every lease or rental agreement for residential real property entered into on or after July 1, 1999, and every contract for the sale of residential real property comprised of one to four dwelling units entered into on or after that date, shall contain, in not less than 8-point type, a notice as specified in paragraph (1), (2), or (3).
(1)A contract entered into by the parties on or after July 1, 1999, and before September 1, 2005, shall contain the following notice:
Notice: The California Department of Justice, sheriffs departments, police departments serving jurisdictions of 200,000 or more, and many other local law enforcement authorities maintain for public access a database of the locations of persons required to register pursuant to subdivision (a) of Section 290.4 of the Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice also maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a 900 telephone service. Callers shall have specific information about individuals they are checking. Information regarding neighborhoods is not available through the 900 telephone service.
(2)A contract entered into by the parties on or after September 1, 2005, and before April 1, 2006, shall contain either the notice specified in paragraph (1) or the notice specified in paragraph (3).
(3)A contract entered into by the parties on or after April 1, 2006, shall contain the following notice:
Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offenders criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides.
(b)Subject to subdivision (c), upon delivery of the notice to the lessee or buyer of the real property, the lessor, seller, or broker is not required to provide information in addition to that contained in the notice regarding the proximity of registered sex offenders. The information in the notice shall be deemed to be adequate to inform the lessee or buyer about the existence of a statewide database of the locations of registered sex offenders and information from the database regarding those locations. The information in the notice shall not give rise to any cause of action against the disclosing party by a registered sex offender.
(c)Notwithstanding subdivisions (a) and (b), nothing in this section shall alter any existing duty of the lessor, seller, or licensee under any other statute or decisional law including, but not limited to, the duties of a lessor, seller, or broker under this article, or the duties of a seller or licensee under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 37.Section 2079.13 of the Civil Code is repealed.SEC. 38.Section 2079.13 is added to the Civil Code, to read:2079.13.(a)For purposes of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(b)Notwithstanding subdivision (a), for the purposes of Sections 2079 to 2079.6, inclusive, and Sections 2079.9 to 2079.24, inclusive, owners and managers of multifamily residential properties improved by more than four residential units are not sellers and a lease of that property does not constitute a sale.
SEC. 39.Section 2079.14 of the Civil Code is amended to read:2079.14.A real estate licensee shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and, except as provided in subdivision (c), shall obtain a signed acknowledgment of receipt from that seller or buyer, except as provided in this section or Section 2079.15, as follows:
(a)The sellers licensee, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement.
(b)The buyers licensee shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyers offer to purchase. If the offer to purchase is not prepared by the buyers licensee, the buyers licensee shall present the disclosure form to the buyer not later than the next business day after receiving the offer to purchase from the buyer.
SEC. 40.Section 2079.15 of the Civil Code is amended to read:2079.15.In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the real estate licensee, or an associate licensee acting for a real estate licensee, shall set forth, sign, and date a written declaration of the facts of the refusal.
SEC. 41.Section 2079.16 of the Civil Code is amended to read:2079.16.The disclosure form required by Section 2079.14 shall contain at a minimum the following:
DISCLOSURE REGARDING
REAL ESTATE AGENCY RELATIONSHIP WITH LICENSEES
(As required by Section 2079.14 of the Civil Code)
When you enter into a relationship with a real estate licensee regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the licensee in the transaction.
SELLERS LICENSE LICENSEE
A Sellers licensee under a listing agreement with the Seller acts as the licensee for the Seller only. A Sellers licensee has the following affirmative obligations:
To the Seller:
A fiduciary duty of care, integrity, honesty, and loyalty in dealings with the Seller.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the licensees duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the licensee materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.
A Sellers licensee may have other listing agreements with other Sellers. The affirmative duties to the Buyer and Seller set forth above in (a), (b) and (c) do not obligate a licensee to reveal to either party any confidential information obtained from the other party or from other clients. Confidential information includes, but is not limited to, facts relating to the partys financial position, motivations, bargaining position, or other personal information that may impact price, such as that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.
BUYERS LICENSEE
The Buyers licensee may also be providing services to other Buyers in regard to the same or different properties. A licensee can, with the Buyers agreement, agree to act as licensee for only the
Buyer. the Buyer and not the Seller. The Buyers licensee may receive compensation for services rendered, either in full or in part from the Seller, but that does not make the Buyers licensee the Sellers licensee. A licensee acting only for a Buyer has the following affirmative obligations:
To the Buyer:
A fiduciary duty of care, integrity, honesty, and loyalty in dealings with the Buyer.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the licensees duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the real estate licensee materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.
The affirmative duties to the Buyer and Seller set forth above in (a), (b) and (c) do not obligate a licensee to reveal to either party any confidential information obtained from the other party or from other clients. Confidential information includes, but is not limited to, facts relating to the partys financial position, motivations, bargaining position, or other personal information that may impact price, such as that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.
LICENSEE REPRESENTING BOTH SELLER AND BUYER
A real estate licensee, either acting directly or through one or more associate licensees, can legally represent both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.
In a dual broker or dual licensee situation, the dual broker and dual licensee have the following affirmative obligations to both the Seller and the Buyer:
(a)A fiduciary duty of care, integrity, honesty and loyalty in the dealings with either the Seller or the Buyer.
(b)Other duties to the Seller and the Buyer as stated above in their respective sections.
In representing both Seller and Buyer, the dual broker or dual licensee may not, without the express permission of the respective party, disclose to the other party in that transaction any confidential information obtained from the other party that does not involve the affirmative duties set forth above in (a) and (b). Confidential information includes, but is not limited to, facts relating to the partys financial position, motivations, bargaining position, or other personal information that may impact price such as the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.
CONSUMER RESPONSIBILITY
Once you have decided on the offer you wish to make or accept, you will receive a confirmation of the licensee relationship. Please pay attention to that confirmation to make sure you are comfortable with that relationship and it reflects your understanding of it.
The above duties of the licensee in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests including reading all documents, reports, and disclosures. The Buyer has a duty to exercise reasonable care to protect himself or herself including obtaining and considering those facts which are known to or within the diligent attention and observation of the Buyer. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate licensee is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.
Real Estate Broker(date) | Buyer/Seller(date) |
(Signature) | |
Associate Licensee Salesperson or Broker Associate(date) | Buyer/Seller(date) |
(Signature) | (Signature) |
(a)As soon as practicable, the buyers licensee shall disclose to the buyer and seller whether the licensee is acting in the real property transaction as the buyers licensee, or as a dual licensee representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the buyers licensee prior to or coincident with execution of that contract by the buyer and the seller, respectively.
(b)As soon as practicable, the sellers licensee shall disclose to the seller whether the sellers licensee is acting in the real property transaction exclusively as the sellers licensee, or as a dual broker representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the sellers licensee prior to or coincident with the execution of that contract by the seller.
(c)The confirmation required by subdivisions (a) and (b) shall be in the following form:
(Name of Sellers Broker, Brokerage firm and license number) is the broker of (check one): | |
[]the seller; or | |
[]both the buyer and seller. (dual broker) | |
(Name of Sellers Licensee and license number) is (check one): | |
[]is the Sellers Licensee. (salesperson or broker associate) | |
[]is both the Buyers and Sellers Licensee. (dual licensee) | |
(Name of Buyers Broker, Brokerage firm and license number) is the broker of (check one): | |
[]the buyer; or | |
[]both the buyer and seller. (dual broker) | |
(Name of Buyers Licensee and license number) is (check one): | |
[]the Buyers Licensee. (salesperson or broker associate) | |
[]both the Buyers and Sellers Licensee. (dual licensee) |
(d)The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. A licensees duty to provide disclosure and confirmation of representation in this section may be performed by a real estate salesperson or broker associate affiliated with that broker.
SEC. 43.Section 2079.18 of the Civil Code is repealed.SEC. 44.Section 2079.19 of the Civil Code is amended to read:2079.19.The payment of compensation or the obligation to pay compensation to a real estate licensee by the seller or buyer is not necessarily determinative of a particular agency relationship between a real estate licensee and the seller or buyer. Buyers and sellers may have a relationship with a real estate licensee established and governed by a written agreement or an agreement for services for licensed activity without an agency relationship. A sellers licensee and a buyers licensee may agree to share any compensation or commission paid, or any right to any compensation or commission for which an obligation arises as the result of a real estate transaction, and the terms of any such agreement shall not necessarily be determinative of a particular relationship.
SEC. 45.Section 2079.20 of the Civil Code is amended to read:2079.20.Nothing in this article prevents a licensee from selecting a specific form of agency relationship not specifically prohibited by this article if the requirements of Section 2079.14 and Section 2079.17 are complied with.
SEC. 46.Section 2079.21 of the Civil Code is repealed.SEC. 47.Section 2079.21 is added to the Civil Code, to read:2079.21.A dual licensee may not, without the express permission of a client, disclose to the other client any confidential information obtained from the other client that does not involve the affirmative duties set forth above. Confidential information includes, but is not limited to, facts relating to the clients financial position, motivations, bargaining position, or other personal information that may impact price such as the Seller will accept a price less than the listing price or that the buyer will pay a price greater than the price offered.
SEC. 48.Section 2079.22 of the Civil Code is amended to read:2079.22.Nothing in this article precludes a sellers licensee from also being a buyers licensee. If a seller or buyer in a transaction chooses to not be represented by a licensee, that does not, of itself, make that licensee a dual licensee.
SEC. 49.Section 2079.23 of the Civil Code is amended to read:2079.23.(a)A contract between the principal and real estate licensee may be modified or altered to change the relationship at any time before the performance of the act which is the object of the licensee services with the written consent of the parties to the relationship.
(b)A lender or an auction company retained by a lender to control aspects of a transaction of real property subject to this part, including validating the sales price, shall not require, as a condition of receiving the lenders approval of the transaction, the homeowner or any licensee to defend or indemnify the lender or auction company from any liability alleged to result from the actions of the lender or auction company. Any clause, provision, covenant, or agreement purporting to impose an obligation to defend or indemnify a lender or an auction company in violation of this subdivision is against public policy, void, and unenforceable.
SEC. 50.Section 2079.24 of the Civil Code is amended to read:2079.24.Nothing in this article shall be construed to either diminish the duty of disclosure owed to buyers and sellers by licensees including their broker associates, salespersons, and employees or to relieve licensees, including their broker associates, salespersons, and employees from liability for their conduct in connection with acts governed by this article. article or for any breach of a fiduciary duty or a duty of disclosure.
SEC. 51.Nothing in this act nor in Assembly Bill 749 of the 201718 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciarys responsibilities and obligations to disclose information relative to a real estate transaction pursuant to Article 6 (commencing with Section 1086) of Chapter 1 of Title 4 of Part 4 of Division 2 of, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of, or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3 of, the Civil Code.
SEC. 51.SEC. 52.This act shall not become operative unless ____ Assembly Bill 749 of the 201718 Regular Session, relating to real estate, is enacted and becomes effective on January 1, 2018.
As used in For purposes of this article, the following terms have the meanings stated in this section: definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code apply.
(a)Property means real property or a mobilehome, as defined in Section 18008 of the Health and Safety Code.(b)Sell and sale include lease and exchange.(c)Buyer includes a lessee in case of a lease and the party with whom property is exchanged in case of an exchange.(d)An agent is one authorized by law to act in that capacity for that type of property, and is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code or is a licensee, as defined in Section 18006 of the Health and Safety Code.(e)An appraiser is one licensed or certified under Part 3 (commencing with Section 11300) of Division 4 of the Business and Professions Code.(f)A listing is a written contract between an owner of property and an agent by which the agent has been authorized to sell the property or to find or obtain a buyer.A listing may be any of the following:(1)An exclusive right to sell listing is a listing whereby the owner grants to an agent, for a specified period of time, the exclusive right to sell or to find or obtain a buyer for the property, and the agent is entitled to the agreed compensation if during that period of time the property is sold, no matter who effected the sale, or the listing agent receives and presents to the owner any enforceable offer from a ready, able, and willing buyer on terms authorized by the listing or accepted by the owner. The exclusive right to sell listing may provide for compensation of the listing agent if the property is sold within a specified period after termination of the listing to anyone with whom the agent has had negotiations before that termination.(2)An exclusive agency listing is the same as an exclusive right to sell listing, except that the owner reserves the right to sell directly but not through any other agent and, in that event, without obligation to pay compensation to the agent.(3)An open listing is a listing which grants no exclusive rights or priorities to the listing agent, and a commission is payable to the agent only if the agent procures and presents to the owner an enforceable offer from a ready, able, and willing buyer on the terms authorized by the listing or accepted by the owner, before the property is otherwise sold either through another agent or by the owner directly and before the listing expires by its terms or is revoked.(g)A listing agent is one who has obtained a listing of property of the kind in respect of which he or she is authorized by law to act as an agent for compensation.(h)A selling agent is an agent participant in a multiple listing service who acts in cooperation with a listing agent and who sells, or finds and obtains a buyer for, the property.(i)Sold includes leased and exchanged. A property is sold when a legally binding commitment to sell the property comes into existence.SEC. 2.Section 1087 of the Civil Code is amended to read:1087.A multiple listing service (MLS) is a facility of cooperation of agents real estate brokers and appraisers, operating through an intermediary which that does not itself act as an agent real estate licensee or appraiser, through which agents real estate brokers establish express or implied legal relationships with respect to listed properties, or which may be used by agents and appraisers, pursuant to the contracts for compensation between real estate brokers that are MLS participants in accordance with its MLS rules of the service, to prepare market evaluations and appraisals of real property. If an open listing is placed in the multiple listing service, the total compensation that the owner is to pay shall go to the selling agent who procures an enforceable offer from a ready, able, and willing buyer on the terms accepted by the owner. An open listing need specify no compensation to the selling agent, but may state that the compensation is to be negotiated between the selling agent and the owner. with respect to listed properties, or that may be used by real estate licensees and appraisers, pursuant to the rules of the service, to prepare market evaluations and appraisals of real property.
SEC. 3.Section 1088 of the Civil Code is amended to read:1088.A listing may not be placed in a multiple listing service unless authorized or directed by the owner seller in the listing.
If an agent a real estate licensee or appraiser places a listing or other information in the multiple listing service , service, that agent real estate licensee or appraiser shall be responsible for the truth of all representations and statements made by the agent real estate licensee or appraiser of which that agent real estate licensee or appraiser had knowledge or reasonably should have had knowledge to anyone injured by their falseness or inaccuracy.
SEC. 4.Section 1089 of the Civil Code is repealed.1089.An open listing may contain an agreement by the owner to pay the listing agent compensation in any amount, at any time, and for any services, other than for selling the property or procuring or finding a buyer, as the agreement may specify.SEC. 5.Section 1090 of the Civil Code is amended to read:1090.Nothing in this article shall preclude a listing agent licensee from also being the selling agent. buyers licensee.
SEC. 6.Section 1102 of the Civil Code is amended to read:1102.(a)Except as provided in Section 1102.2, this article applies to any transfer by sale, exchange, installment land sale contract, as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of real property or residential stock cooperative, improved with or consisting of not less than one nor more than four dwelling units. sale of residential property.
(b)Except as provided in Section 1102.2, this article shall apply to a resale transaction entered into on or after January 1, 2000, for a manufactured home, as defined in Section 18007 of the Health and Safety Code, or a mobilehome, as defined in Section 18008 of the Health and Safety Code, which manufactured home or mobilehome is classified as personal property and intended for use as a residence.(b)For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(c)Any waiver of the requirements of this article is void as against public policy.
SEC. 7.Section 1102.1 of the Civil Code is amended to read:1102.1.(a)In enacting Chapter 817 of the Statutes of 1994, it was the intent of the Legislature to clarify and facilitate the use of the real estate disclosure statement, as specified in Section 1102.6. The Legislature intended the statement to be used by transferors sellers making disclosures required under this article and by agents real estate licensees making disclosures required by Section 2079 on the agents real estate licensees portion of the real estate disclosure statement, in transfers subject to this article. In transfers not subject to this article, agents real estate licensees may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their agents, real estate licensees, to disclose any known fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a, and that nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079.
It is also the intent of the Legislature that the delivery of a real estate transfer disclosure statement may not be waived in an as is sale, as held in Loughrin v. Superior Court (1993) 15 Cal. App. 4th 1188.
(b)In enacting Chapter 677 of the Statutes of 1996, it was the intent of the Legislature to clarify and facilitate the use of the manufactured home and mobilehome transfer disclosure statement applicable to the resale of a manufactured home or mobilehome pursuant to subdivision (b) of Section 1102. The Legislature intended the statements to be used by transferors making disclosures required under this article and by agents real estate licensees making disclosures required by Section 2079 on the agents real estate licensees portion of the disclosure statement and as required by Section 18046 of the Health and Safety Code on the dealers portion of the manufactured home and mobilehome transfer disclosure statement, in transfers subject to this article. In transfers not subject to this article, agents real estate licensees may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their agents, real estate licensees, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a or to affect the existing obligations of the parties to a manufactured home or mobilehome purchase contract, and nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079 or the duty of a manufactured home or mobilehome dealer or salesperson pursuant to Section 18046 of the Health and Safety Code.
It is also the intent of the Legislature that the delivery of a mobilehome transfer disclosure statement may not be waived in an as is sale.
(c)It is the intent of the Legislature that manufactured home and mobilehome dealers and salespersons and real estate brokers and salespersons use the form provided pursuant to Section 1102.6d. It is also the intent of the Legislature for sellers of manufactured homes or mobilehomes who are neither manufactured home dealers or salespersons nor real estate brokers or salespersons to use the Manufactured Home/Mobilehome Transfer Disclosure Statement contained in Section 1102.6d.
SEC. 8.Section 1102.2 of the Civil Code is amended to read:1102.2.This article does not apply to the following:
(a)Transfers which Sales that are required to be preceded by the furnishing to a prospective transferee buyer of a copy of a public report pursuant to Section 11018.1 of the Business and Professions Code and transfers which that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code.
(b)Transfers Sales pursuant to court order, including, but not limited to, transfers sales ordered by a probate court in the administration of an estate, transfers sales pursuant to a writ of execution, transfers sales by any foreclosure sale, transfers by a trustee in bankruptcy, transfers sales by eminent domain, and transfers sales resulting from a decree for specific performance.
(c)Transfers Sales to a mortgagee by a mortgagor or successor in interest who is in default, transfers sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, transfers by any foreclosure sale after default, transfers by any foreclosure sale after default in an obligation secured by a mortgage, transfers by a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, transfers sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure, transfers sales to the legal owner or lienholder of a manufactured home or mobilehome by a registered owner or successor in interest who is in default, or transfers sales by reason of any foreclosure of a security interest in a manufactured home or mobilehome.
(d)Transfers Sales by a fiduciary in the course of the administration of a decedents estate, trust, guardianship, conservatorship, or trust. decedents estate. This exemption shall not apply to a transfer sale if the trustee is a natural person who is sole a trustee of a revocable trust and he or she is a former owner of the property or was an occupant in possession of the property within the preceding year.
(e)Transfers Sales from one coowner to one or more other coowners.
(f)Transfers Sales made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors.
(g)Transfers Sales between spouses resulting from a judgment of dissolution of marriage or of legal separation or from a property settlement agreement incidental to that judgment.
(h)Transfers Sales by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(i)Transfers Sales under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(j)Transfers Sales or exchanges to or from any governmental entity.
(k)Sales of any portion of a property not constituting residential property with one to four dwelling units.
SEC. 9.Section 1102.3 of the Civil Code is amended to read:1102.3.The transferor seller of any real property subject to this article shall deliver to the prospective transferee buyer the completed written statement required by this article, as follows:
(a)In the case of a sale, as soon as practicable before transfer of title.
(b)In the case of transfer sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(c)With(c)With respect to any transfer sale subject to subdivision (a) or (b), the transferor seller shall indicate compliance with this article either on the receipt for deposit, the real property sales contract, the lease, or any addendum attached thereto or on a separate document.
If any disclosure, or any material amendment of any disclosure, required to be made by this article, is delivered after the execution of an offer to purchase, the transferee prospective buyer shall have three days after delivery in person or five days after delivery by deposit in the mail, mail or delivery of an electronic record, to terminate his or her offer by delivery of a written notice of termination to the transferor seller or the transferors agent. sellers licensee. The disclosure is complete when Sections I, II and III in the form described in Section 1102.6 are completed and delivered. A real estate licensee may complete his or her portion of the required disclosure by providing all of the information on the licensees inspection disclosure set forth in Section 1102.6.
SEC. 10.Section 1102.4 of the Civil Code is amended to read:1102.4.(a)Neither the transferor seller nor any listing or selling agent buyers licensee shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the transferor seller or that listing or selling agent, buyers licensee, was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting it.
(b)The delivery of any information required to be disclosed by this article to a prospective transferee buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the transferor seller or any listing or selling agent buyers licensee of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, structural pest control operator, contractor, or other expert, dealing with matters within the scope of the professionals license or expertise, shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective transferee buyer pursuant to a request therefor, whether written or oral. In responding to such a request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1102.6 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where such a statement is furnished, the expert shall not be responsible for any items of information, or parts thereof, other than those expressly set forth in the statement.
SEC. 11.Section 1102.5 of the Civil Code is amended to read:1102.5.If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any act, occurrence, or agreement subsequent to the delivery of the required disclosures, the any inaccuracy resulting therefrom does not constitute a violation of this article. If at the time the disclosures are required to be made, an item of information required to be disclosed is unknown or not available to the transferor, seller, and the transferor seller or his or her agent real estate licensee has made a reasonable effort to ascertain it, the transferor seller may use an approximation of the information, provided the approximation is clearly identified as such, is reasonable, is based on the best information reasonably available to the transferor seller or his or her agent, real estate licensee, and is not used for the purpose of circumventing or evading this article.
SEC. 12.Section 1102.6a of the Civil Code is amended to read:1102.6a.(a)On and after July 1, 1990, any Any city or county may elect to require disclosures on the form set forth in subdivision (b) in addition to those disclosures required by Section 1102.6. However, this section does not affect or limit the authority of a city or county to require disclosures on a different disclosure form in connection with transactions subject to this article pursuant to an ordinance adopted prior to July 1, 1990. An ordinance like this adopted prior to July 1, 1990, may be amended thereafter to revise the disclosure requirements of the ordinance, in the discretion of the city council or county board of supervisors.
(b)Disclosures required pursuant to this section pertaining to the property proposed to be transferred, sold, shall be set forth in, and shall be made on a copy of, the following disclosure form:
PRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE INSERTEDPRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE INSERTED(c)This section does not preclude the use of addenda to the form specified in subdivision (b) to facilitate the required disclosures. This section does not preclude a city or county from using the disclosure form specified in subdivision (b) for a purpose other than that specified in this section.
(d)(1)On and after January 1, 2005, if a city or county adopts a different or additional disclosure form pursuant to this section regarding the proximity or effects of an airport, the statement in that form shall contain, at a minimum, the information in the statement Notice of Airport in Vicinity found in Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255.
(2)On and after January 1, 2006, if a city or county does not adopt a different or additional disclosure form pursuant to this section, then the provision of an airport influence area disclosure pursuant to Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255, or if there is not a current airport influence map, a written disclosure of an airport within two statute miles, shall be deemed to satisfy any city or county requirements for the disclosure of airports in connection with transfers sales of real property.
SEC. 13.Section 1102.6b of the Civil Code is amended to read:1102.6b.(a)This section applies to all transfers sales of real property for which all of the following apply:
(1)The transfer sale is subject to this article.
(2)The property being transferred sold is subject to a continuing lien securing the levy of special taxes pursuant to the Mello-Roos Community Facilities Act (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code), to a fixed lien assessment collected in installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or to a contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code.
(3)A notice is not required pursuant to Section 53341.5 of the Government Code.
(b)In addition to any other disclosure required pursuant to this article, the seller of any real property subject to this section shall make a good faith effort to obtain a disclosure notice concerning the special tax as provided for in Section 53340.2 of the Government Code, or a disclosure notice concerning an assessment installment as provided in Section 53754 of the Government Code, from each local agency that levies a special tax pursuant to the Mello-Roos Community Facilities Act, or that collects assessment installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or a disclosure notice concerning the contractual assessment as provided in Section 5898.24 of the Streets and Highways Code, on the property being transferred, sold, and shall deliver that notice or those notices to the prospective purchaser, buyer, as long as the notices are made available by the local agency.
(c) (1)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) by delivering a disclosure notice that is substantially equivalent and obtained from another source, until December 31, 2004. source.
(2)The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the assessments collected under the contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code by delivering a disclosure notice that is substantially equivalent and obtained from another source.
(3)For the purposes of this section, a substantially equivalent disclosure notice includes, but is not limited to, a copy of the most recent years property tax bill or an itemization of current assessment amounts applicable to the property.
(d)(1)Notwithstanding subdivision (c), at any time after the effective date of this section, the seller of real property subject to this section may satisfy the disclosure notice requirements of this section by delivering a disclosure notice obtained from a nongovernmental source that satisfies the requirements of paragraph (2).
(2)A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe a special tax pursuant to the Mello-Roos Community Facilities Act levied against the property or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy a special tax pursuant to the Mello-Roos Community Facilities Act against the property, and shall include the name of the Mello-Roos entity levying taxes against the property, the annual tax due for the Mello-Roos entity for the current tax year, the maximum tax that may be levied against the property in any year, the percentage by which the maximum tax for the Mello-Roos entity may increase per year, and the date until the tax may be levied against the property for the Mello-Roos entity and a contact telephone number, if available, for further information about the Mello-Roos entity. A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe special assessments and bonds pursuant to the Improvement Bond Act of 1915 levied against the property, or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy special assessments and bonds pursuant to the Improvement Bond Act of 1915 against the property, and shall include the name of the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915, the current annual tax on the property for the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915 and a contact telephone number, if available, for further information about the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915.
(3)This section does not change the ability to make disclosures pursuant to Section 1102.4 of the Civil Code.
(e)If a disclosure received pursuant to subdivision (b), (c), or (d) has been delivered to the transferee, buyer, a seller or his or her agent real estate licensee is not required to provide additional information concerning, and information in the disclosure shall be deemed to satisfy the responsibility of the seller or his or her agent real estate licensee to inform the transferee buyer regarding the special tax or assessment installments and the district. Notwithstanding subdivision (b), (c), or (d), nothing in this section imposes a duty to discover a special tax or assessment installments or the existence of any levying district not actually known to the agents. real estate licensees.
SEC. 14.Section 1102.6c of the Civil Code is amended to read:1102.6c.(a)In addition to any other disclosure required pursuant to this article, it shall be the sole responsibility of the seller of any real property subject to this article, or his or her agent, real estate licensee, to deliver to the prospective purchaser buyer a disclosure notice that includes both of the following:
(1)A notice, in at least 12-point type or a contrasting color, as follows:
California property tax law requires the Assessor to revalue real property at the time the ownership of the property changes. Because of this law, you may receive one or two supplemental tax bills, depending on when your loan closes.
The supplemental tax bills are not mailed to your lender. If you have arranged for your property tax payments to be paid through an impound account, the supplemental tax bills will not be paid by your lender. It is your responsibility to pay these supplemental bills directly to the Tax Collector. tax collector. If you have any question concerning this matter, please call your local Tax Collectors Office. tax collectors office.
(2)A title, in at least 14-point type or a contrasting color, that reads as follows: Notice of Your Supplemental Property Tax Bill.
(b)The disclosure notice requirements of this section may be satisfied by delivering a disclosure notice pursuant to Section 1102.6b that satisfies the requirements of subdivision (a).
SEC. 15.Section 1102.9 of the Civil Code is amended to read:1102.9.Any disclosure made pursuant to this article may be amended in writing by the transferor seller or his or her agent, real estate licensee, but the amendment shall be subject to Section 1102.3 or 1102.3a.
SEC. 16.Section 1102.12 of the Civil Code is amended to read:1102.12.(a)If more than one licensed real estate broker is acting as an agent in In a real estate transaction subject to this article, the broker who has obtained the offer made by the transferee a buyers licensee or a dual licensee shall, except as otherwise provided in this article, deliver the disclosure required by this article to the transferee, buyer, unless the transferor seller has given other written instructions for delivery. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.
(b)If a licensed real estate broker licensee responsible for delivering the disclosures under this section cannot obtain the disclosure document required and does not have written assurance from the transferee buyer that the disclosure has been received, the broker real estate licensee shall advise the transferee buyer in writing of his or her rights to the disclosure. A licensed real estate broker licensee responsible for delivering disclosures under this section shall maintain a record of the action taken to effect compliance in accordance with Section 10148 of the Business and Professions Code.
SEC. 17.Section 1102.14 of the Civil Code is repealed.1102.14.(a)As used in this article, listing agent means listing agent as defined in subdivision (f) of Section 1086.(b)As used in this article, selling agent means selling agent as defined in subdivision (g) of Section 1086, exclusive of the requirement that the agent be a participant in a multiple listing service as defined in Section 1087.SEC. 18.Section 1102.155 of the Civil Code is amended to read:1102.155.(a)(1)The seller of residential real property subject to this article shall disclose, in writing, that Section 1101.4 of the Civil Code requires that California single-family residences be equipped with water-conserving plumbing fixtures on or before January 1, 2017, and shall disclose whether the property includes any noncompliant plumbing fixtures. fixtures as defined in subdivision (c) of Section 1101.3.
(2)The seller shall affirm that this representation is that of the seller and not a representation of any agent, real estate licensee, and that this disclosure is not intended to be part of any contract between the buyer and the seller. The seller shall further affirm that this disclosure is not a warranty of any kind by the seller or any agent real estate licensee representing any principal in the transaction and is not a substitute for any inspections that or warranties that any principal may wish to obtain.
(b)This section shall become operative on January 1, 2017.
SEC. 19.Section 1103 of the Civil Code is amended to read:1103.(a)Except For purposes of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(b)Except as provided in Section 1103.1, this article applies to the transfer by sale, a sale, exchange, installment land sale real property sales contract, as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any real property described in subdivision (c), (d), or residential stock cooperative, improved with or consisting of not less than one nor more than four dwelling units.
(b)(c)Except as provided in Section 1103.1, this article shall apply applies to a resale transaction entered into on or after January 1, 2000, for a manufactured home, as defined in Section 18007 of the Health and Safety Code, that is classified as personal property intended for use as a residence, or a mobilehome, as defined in Section 18008 of the Health and Safety Code, that is classified as personal property intended for use as a residence, if the real property on which the manufactured home or mobilehome is located is real property described in subdivision (c). (d).
(c)(d)This article shall apply to the transactions described in subdivisions (a) (b) and (b) (c) only if the transferor seller or his or her agent real estate licensee is required by one or more of the following to disclose the propertys location within a hazard zone:
(1)A person who is acting as an agent a real estate licensee for a transferor seller of real property that is located within a special flood hazard area (any type Zone A or V) designated by the Federal Emergency Management Agency, or the transferor seller if he or she is acting without an agent, a real estate licensee, shall disclose to any prospective transferee buyer the fact that the property is located within a special flood hazard area if either:
(A)The transferor, seller, or the transferors agent, sellers real estate licensee, has actual knowledge that the property is within a special flood hazard area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the special flood hazard area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(2)A person who is acting as an agent a real estate licensee for a transferor seller of real property that is located within an area of potential flooding designated pursuant to Section 8589.5 of the Government Code, or the transferor seller if he or she is acting without an agent, a real estate licensee, shall disclose to any prospective transferee buyer the fact that the property is located within an area of potential flooding if either:
(A)The transferor, seller, or the transferors agent, sellers real estate licensee, has actual knowledge that the property is within an inundation area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the inundation area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(3)A transferor seller of real property that is located within a very high fire hazard severity zone, designated pursuant to Section 51178 of the Government Code, shall disclose to any prospective transferee buyer the fact that the property is located within a very high fire hazard severity zone and is subject to the requirements of Section 51182 of the Government Code if either:
(A)The transferor, seller or the transferors agent, sellers real estate licensee, has actual knowledge that the property is within a very high fire hazard severity zone.
(B)A map that includes the property has been provided to the local agency pursuant to Section 51178 of the Government Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the local agency.
(4)A person who is acting as an agent a real estate licensee for a transferor seller of real property that is located within an earthquake fault zone, designated pursuant to Section 2622 of the Public Resources Code, or the transferor seller if he or she is acting without an agent, a real estate licensee, shall disclose to any prospective transferee buyer the fact that the property is located within a delineated earthquake fault zone if either:
(A)The transferor, seller, or the transferors agent, sellers real estate licensee, has actual knowledge that the property is within a delineated earthquake fault zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2622 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(5)A person who is acting as an agent a real estate licensee for a transferor seller of real property that is located within a seismic hazard zone, designated pursuant to Section 2696 of the Public Resources Code, or the transferor seller if he or she is acting without an agent, a real estate licensee shall disclose to any prospective transferee buyer the fact that the property is located within a seismic hazard zone if either:
(A)The transferor, seller, or the transferors agent, sellers real estate licensee, has actual knowledge that the property is within a seismic hazard zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2696 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(6)A transferor seller of real property that is located within a state responsibility area determined by the board, pursuant to Section 4125 of the Public Resources Code, shall disclose to any prospective transferee buyer the fact that the property is located within a wildland area that may contain substantial forest fire risks and hazards and is subject to the requirements of Section 4291 of the Public Resources Code if either:
(A)The transferor, seller, or the transferors agent, sellers real estate licensee, has actual knowledge that the property is within a wildland fire zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 4125 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(d)Any waiver of the requirements of this article is void as against public policy.
SEC. 20.Section 1103.1 of the Civil Code is amended to read:1103.1.(a)This article does not apply to the following transfers: sales:
(1)Transfers Sales pursuant to court order, including, but not limited to, transfers sales ordered by a probate court in administration of an estate, transfers sales pursuant to a writ of execution, transfers sales by any foreclosure sale, transfers sales by a trustee in bankruptcy, transfers sales by eminent domain, and transfers sales resulting from a decree for specific performance.
(2)Transfers Sales to a mortgagee by a mortgagor or successor in interest who is in default, transfers sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, transfers by any foreclosure sale after default, transfers by any foreclosure sale after default in an obligation secured by a mortgage, transfers by a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, or transfers sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure.
(3)Transfers Sales by a fiduciary in the course of the administration of a decedents estate, trust, guardianship, conservatorship, or trust. decedents estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and he or she is a former owner of the property or an occupant in possession of the property within the preceding year.
(4)Transfers Sales from one coowner to one or more other coowners.
(5)Transfers Sales made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors. sellers.
(6)Transfers Sales between spouses resulting from a judgment of dissolution of marriage or of legal separation of the parties or from a property settlement agreement incidental to that judgment.
(7)Transfers Sales by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(8)Transfers Sales under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(9)Transfers Sales or exchanges to or from any governmental entity.
(b)Transfers Sales not subject to this article may be subject to other disclosure requirements, including those under Sections 8589.3, 8589.4, and 51183.5 of the Government Code and Sections 2621.9, 2694, and 4136 of the Public Resources Code. In transfers sales not subject to this article, agents real estate licensees may make required disclosures in a separate writing.
SEC. 21.Section 1103.2 of the Civil Code is amended to read:1103.2.(a)The disclosures required by this article are set forth in, and shall be made on a copy of, the following Natural Hazard Disclosure Statement:
NATURAL HAZARD DISCLOSURE STATEMENT | |
This statement applies to the following property: | |
The transferor seller and his or her agent(s) real estate licensee(s) or a third-party consultant disclose the following information with the knowledge that even though this is not a warranty, prospective transferees buyers may rely on this information in deciding whether and on what terms to purchase the subject property. Transferor Seller hereby authorizes any agent(s) real estate licensee(s) representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. | |
The following are representations made by the transferor seller and his or her agent(s) real estate licensee(s) based on their knowledge and maps drawn by the state and federal governments. This information is a disclosure and is not intended to be part of any contract between the transferee seller and transferor. buyer. | |
THIS REAL PROPERTY LIES WITHIN THE FOLLOWING | |
A SPECIAL FLOOD HAZARD AREA (Any type Zone A or V) designated by the Federal Emergency Management Agency. | |
Yes____ No ____Do not know and | |
AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code. | |
Yes____ No ____Do not know and | |
A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. | |
Yes____ No ____ | |
A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the states responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. | |
Yes____ No____ | |
AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. | |
Yes____ No____ | |
A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public
| |
Yes (Landslide Zone)____________Yes (Liquefaction Zone) ______ No____Map not yet released by state ____ | |
THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER. | |
THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER. TRANSFEREE(S) AND TRANSFEROR(S) SELLER(S) AND BUYER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. | |
Signature of Transferor(s) Seller(s) | Date |
Signature of Transferor(s) Seller(s) | Date |
Agent(s) Sellers Licensee(s) | Date |
Agent(s) Sellers Licensee(s) | Date |
Check only one of the following: | |
Transferor(s) Seller(s) and their agent(s) real estate licensee(s)
represent that the information | |
Transferor(s) Seller(s) and their agent(s) real estate licensee(s) acknowledge that they have | |
Third-Party Disclosure Provider(s) | Date |
Transferee Buyer represents that he or she has read and understands this | |
Signature of Transferee(s) Buyer(s) | Date |
Signature of Transferee(s) Buyer(s) | Date |
(b)If an earthquake fault zone, seismic hazard zone, very high fire hazard severity zone, or wildland fire area map or accompanying information is not of sufficient accuracy or scale that a reasonable person can determine if the subject real property is included in a natural hazard area, the transferor or transferors agent seller or sellers real estate licensee shall mark Yes on the Natural Hazard Disclosure Statement. The transferor or transferors agent sellers real estate licensee may mark No on the Natural Hazard Disclosure Statement if he or she attaches a report prepared pursuant to subdivision (c) of Section 1103.4 that verifies the property is not in the hazard zone. Nothing in this subdivision is intended to limit or abridge any existing duty of the transferor seller or the transferors agents sellers real estate licensees to exercise reasonable care in making a determination under this subdivision.
(c)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is no longer within a special flood hazard area, then the transferor seller or transferors agent sellers real estate licensee may mark No on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The transferor seller or transferors agent sellers real estate licensee shall attach a copy of the Letter of Map Revision to the disclosure statement.
(d)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is within a special flood hazard area and the location of the letter has been posted pursuant to subdivision (g) of Section 8589.3 of the Government Code, then the transferor seller or transferors agent sellers real estate licensee shall mark Yes on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The transferor seller or transferors agent sellers real estate licensee shall attach a copy of the Letter of Map Revision to the disclosure statement.
(e)The disclosure required pursuant to this article may be provided by the transferor seller and the transferors agent sellers real estate licensee in the Local Option Real Estate Disclosure Statement described in Section 1102.6a, provided that the Local Option Real Estate Disclosure Statement includes substantially the same information and substantially the same warnings that are required by this section.
(f)(1)The legal effect of a consultants report delivered to satisfy the exemption provided by Section 1103.4 is not changed when it is accompanied by a Natural Hazard Disclosure Statement.
(2)A consultants report shall always be accompanied by a completed and signed Natural Hazard Disclosure Statement.
(3)In a disclosure statement required by this section, an agent a real estate licensee and third-party provider may cause his or her name to be preprinted in lieu of an original signature in the portions of the form reserved for signatures. The use of a preprinted name shall not change the legal effect of the acknowledgment.
(g)The disclosure required by this article is only a disclosure between the transferor, seller, the transferors agents, sellers real estate licensees, and the transferee, prospective buyer, and shall not be used by any other party, including, but not limited to, insurance companies, lenders, or governmental agencies, for any purpose.
(h)In any transaction in which a transferor seller has accepted, prior to June 1, 1998, an offer to purchase, the transferor, seller, or his or her agent, real estate licensee shall be deemed to have complied with the requirement of subdivision (a) if the transferor seller or agent real estate licensee delivers to the prospective transferee buyer a statement that includes substantially the same information and warning as the Natural Hazard Disclosure Statement.
SEC. 22.Section 1103.3 of the Civil Code is amended to read:1103.3.(a)The transferor seller of any real property subject to this article shall deliver to the prospective transferee buyer the written statement required by this article, as follows:
(1)In the case of a sale, as soon as practicable before transfer of title.
(2)In the case of transfer sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before the prospective buyers execution of the contract. For the purpose of this subdivision, execution means the making or acceptance of an offer.
(b)The transferor seller shall indicate compliance with this article either on the receipt for deposit, the real property sales contract, the lease, any addendum attached thereto, or on a separate document.
(c)If any disclosure, or any material amendment of any disclosure, required to be made pursuant to this article is delivered after the execution of an offer to purchase, the transferee prospective buyer shall have three days after delivery in person or five days after delivery by deposit in the mail or delivery of an electronic record, to terminate his or her offer by delivery of a written notice of termination to the transferor seller or the transferors agent. sellers real estate licensee.
SEC. 23.Section 1103.4 of the Civil Code is amended to read:1103.4.(a)Neither the transferor seller nor any listing licensee or selling agent buyers licensee shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the transferor seller or the listing licensee or selling agent, buyers licensee and was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting the information.
(b)The delivery of any information required to be disclosed by this article to a prospective transferee buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the transferor or any listing or selling agent seller, listing licensee, and buyers licensee of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, or expert in natural hazard discovery dealing with matters within the scope of the professionals license or expertise shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective transferee buyer pursuant to a request therefor, whether written or oral. In responding to that request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1103.2 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where that statement is furnished, the expert shall not be responsible for any items of information, or parts thereof, other than those expressly set forth in the statement.
(1)In responding to the request, the expert shall determine whether the property is within an airport influence area as defined in subdivision (b) of Section 11010 of the Business and Professions Code. If the property is within an airport influence area, the report shall contain the following statement:
NOTICE OF AIRPORT IN VICINITY | |
This property is presently located in the vicinity of an |
(2)In responding to the request, the expert shall determine whether the property is within the jurisdiction of the San Francisco Bay Conservation and Development Commission,
as defined in Section 66620 of the Government Code. If the property is within the commissions jurisdiction, the report shall contain the following notice:
NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION JURISDICTION
This property is located within the jurisdiction of the San Francisco Bay Conservation and Development Commission. Use and development of property within the commissions jurisdiction may be subject to special regulations, restrictions, and permit requirements. You may wish to investigate and determine whether they are acceptable to you and your intended use of the property before you complete your transaction.
(3)In responding to the request, the expert shall determine whether the property is presently located within one mile of a parcel of real property designated as Prime Farmland, Farmland of Statewide Importance, Unique Farmland, Farmland of
Local Importance, or Grazing Land on the most current Important Farmland Map issued by the California Department of Conservation, Division of Land Resource Protection, utilizing solely the county-level GIS map data, if any, available on the Farmland Mapping and Monitoring Program Web site. If the residential property is within one mile of a designated farmland area, the report shall contain the following notice:
NOTICE OF RIGHT TO FARM
This property is located within one mile of a farm or ranch land designated on the current county-level GIS Important Farmland Map, issued by the California Department of Conservation, Division of Land Resource Protection. Accordingly, the property may be subject to inconveniences or discomforts resulting from agricultural operations that are a normal and necessary aspect of living in a community with a strong rural character and a healthy agricultural sector. Customary
agricultural practices in farm operations may include, but are not limited to, noise, odors, dust, light, insects, the operation of pumps and machinery, the storage and disposal of manure, bee pollination, and the ground or aerial application of fertilizers, pesticides, and herbicides. These agricultural practices may occur at any time during the 24-hour day. Individual sensitivities to those practices can vary from person to person. You may wish to consider the impacts of such agricultural practices before you complete your purchase. Please be advised that you may be barred from obtaining legal remedies against agricultural practices conducted in a manner consistent with proper and accepted customs and standards pursuant to Section 3482.5 of the Civil Code or any pertinent local ordinance.
(4)In responding to the request, the expert shall determine, utilizing map coordinate data made available by the Office of Mine Reclamation, whether the property is presently located within one mile of a mine operation for which map coordinate data has been reported to the director pursuant to Section 2207 of the Public Resources Code. If the expert determines, from the available map coordinate data, that the residential property is located within one mile of a mine operation, the report shall contain the following notice:
NOTICE OF MINING OPERATIONS:
This property is located within one mile of a mine operation for which the mine owner or operator has reported mine location data to the Department of Conservation pursuant to Section 2207 of the Public Resources Code. Accordingly, the property may be subject to inconveniences resulting from mining operations. You may wish to consider the impacts of these practices before you complete your transaction.
SEC. 24.Section 1103.5 of the Civil Code is amended to read:1103.5.(a)After a transferor seller and his or her agent real estate licensee comply with Section 1103.2, they shall be relieved of further duty under this article with respect to those items of information. The transferor seller and his or her agent real estate licensee shall not be required to provide notice to the transferee prospective buyer if the information provided subsequently becomes inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence, unless the transferor seller or agent real estate licensee has actual knowledge that the information has become inaccurate.
(b)If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence subsequent to the delivery of the required disclosures, the inaccuracy resulting therefrom does not constitute a violation of this article.
SEC. 25.Section 1103.8 of the Civil Code is amended to read:1103.8.(a)The specification of items for disclosure in this article does not limit or abridge any obligation for disclosure created by any other provision of law or that may exist in order to avoid fraud, misrepresentation, or deceit in the transfer sale transaction. The legislature Legislature does not intend to affect the existing obligations of the parties to a real estate contract, or their agents, licensees, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical condition of the property and previously received reports of physical inspection noted on the disclosure form provided pursuant to Section 1102.6 or 1102.6a.
(b)Nothing in this article shall be construed to change the duty of a real estate broker or salesperson licensee pursuant to Section 2079.
SEC. 26.Section 1103.9 of the Civil Code is amended to read:1103.9.Any disclosure made pursuant to this article may be amended in writing by the transferor seller or his or her agent, real estate licensee, but the amendment shall be subject to Section 1103.3.
SEC. 27.Section 1103.12 of the Civil Code is amended to read:1103.12.(a)If more than one licensed real estate broker is acting as an agent in In a real estate transaction subject to this article, the broker who has obtained the offer made by the transferee a buyers licensee or a dual licensee shall, except as otherwise provided in this article, deliver the disclosure required by this article to the transferee, buyer, unless the transferor seller has given other written instructions for delivery. If there is only one real estate broker in a transaction subject to this article, that real estate licensee shall deliver the disclosure required by this article to the buyer. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.
(b)If a licensed real estate broker responsible for delivering the disclosures under this section cannot obtain the disclosure document required and does not have written assurance from the transferee buyer that the disclosure has been received, the broker shall advise the transferee buyer in writing of his or her rights to the disclosure. A licensed real estate broker responsible for delivering disclosures under this section shall maintain a record of the action taken to effect compliance in accordance with Section 10148 of the Business and Professions Code.
SEC. 28.Section 1103.14 of the Civil Code is repealed.1103.14.(a)As used in this article, listing agent means listing agent as defined in subdivision (f) of Section 1086.(b) As used in this article, selling agent means selling agent as defined in subdivision (g) of Section 1086, exclusive of the requirement that the agent be a participant in a multiple listing service as defined in Section 1087.SEC. 29.Section 2079 of the Civil Code is amended to read:2079.(a)It is the duty of a real estate broker or salesperson, licensee, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to a prospective purchaser buyer of residential real property comprising one to four dwelling units, or a manufactured home as defined in Section 18007 of the Health and Safety Code, to conduct a reasonably competent and diligent visual inspection of the property offered for sale and to disclose to that prospective purchaser buyer all facts materially affecting the value or desirability of the property that an investigation would reveal, if that broker licensee has a written contract with the seller to find or obtain a buyer or is a broker who acts in cooperation with that broker licensee to find and obtain a buyer.
(b)It is the duty of a real estate broker or salesperson licensee, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code Code, to comply with this section and any regulations imposing standards of professional conduct adopted pursuant to Section 10080 of the Business and Professions Code with reference to Sections 10176 and 10177 of the Business and Professions Code.
SEC. 30.Section 2079.6 of the Civil Code is amended to read:2079.6.This article does not apply to transfers sales which are required to be preceded by the furnishing, to a prospective transferee, buyer, of a copy of a public report pursuant to Section 11018.1 or Section 11234 of the Business and Professions Code and transfers sales that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code, unless the property has been previously occupied.
SEC. 31.Section 2079.7 of the Civil Code is amended to read:2079.7.(a)If a consumer information booklet described in Section 10084.1 of the Business and Professions Code is delivered to a transferee buyer in connection with the transfer sale of real property, including property specified in Section 1102 of the Civil Code, or manufactured housing, as defined in Section 18007 of the Health and Safety Code, a seller or broker licensee is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the transferee buyer regarding, common environmental hazards, as described in the booklet, that can affect real property.
(b)Notwithstanding subdivision (a), nothing in this section either increases or decreases the duties, if any, of sellers or brokers, licensees, including but not limited to, the duties of a seller or broker licensee under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or Section 25359.7 of the Health and Safety Code, or alters the duty of a seller or broker licensee to disclose the existence of known environmental hazards on or affecting the real property.
SEC. 32.Section 2079.8 of the Civil Code is amended to read:2079.8.(a)If a Homeowners Guide to Earthquake Safety described in Section 10149 of the Business and Professions Code is delivered to a transferee buyer in connection with the transfer sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or broker licensee is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the transferee buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the transferee buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers or brokers, licensees, including, but not limited to, the duties of a seller or broker licensee under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, or alters the duty of a seller or broker licensee to disclose the existence of known hazards on or affecting the real property.
SEC. 33.Section 2079.9 of the Civil Code is amended to read:2079.9.(a)If a Commercial Property Owners Guide to Earthquake Safety described in Section 10147 of the Business and Professions Code is delivered to a transferee buyer in connection with the transfer sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or broker licensee is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the transferee buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the transferee buyer or seller might consider.
(b)Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers, their brokers or agents real estate licensees under this article or under Chapter 7.5 (commencing with Section 2621) or Chapter 7.8 (commencing with Section 2690) of Division 2 of the Public Resources Code, or alters the duty of a seller, agent, or broker seller or real estate licensee to disclose the existence of known hazards on or affecting the real property.
SEC. 34.Section 2079.10 of the Civil Code is amended to read:2079.10.(a)If the informational booklet published pursuant to Section 25402.9 of the Public Resources Code, concerning the statewide home energy rating program adopted pursuant to Section 25942 of the Public Resources Code, is delivered to a transferee buyer in connection with the transfer sale of real property, including, but not limited to, property specified in Section 1102, manufactured homes as defined in Section 18007 of the Health and Safety Code, and property subject to Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, the seller or broker licensee is not required to provide information additional to that contained in the booklet concerning home energy ratings, and the information in the booklet shall be deemed to be adequate to inform the transferee buyer about the existence of a statewide home energy rating program.
(b)Notwithstanding subdivision (a), nothing in this section alters any existing duty of the seller or broker licensee under any other law including, but not limited to, the duties of a seller or broker licensee under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, or Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, to disclose information concerning the existence of a home energy rating program affecting the real property.
(c)If the informational booklet or materials described in Section 375.5 of the Water Code concerning water conservation and water conservation programs are delivered to a transferee buyer in connection with the transfer sale of real property, including property described in subdivision (a), the seller or broker licensee is not required to provide information concerning water conservation and water conservation programs that is additional to that contained in the booklet or materials, and the information in the booklet or materials shall be deemed to be adequate to inform the transferee buyer about water conservation and water conservation programs.
SEC. 35.Section 2079.10.5 of the Civil Code is amended to read:2079.10.5.(a)Every contract for the sale of residential real property entered into on or after July 1, 2013, shall contain, in not less than 8-point type, a notice as specified below:
NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES
This notice is being provided simply to inform you that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via the National Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at http://www.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS Internet Web site.
(b)Upon delivery of the notice to the transferee buyer of the real property, the seller or broker is not required to provide information in addition to that contained in the notice regarding gas and hazardous liquid transmission pipelines in subdivision (a). The information in the notice shall be deemed to be adequate to inform the transferee buyer about the existence of a statewide database of the locations of gas and hazardous liquid transmission pipelines and information from the database regarding those locations.
(c)Nothing in this section shall alter any existing duty under any other statute or decisional law imposed upon the seller or broker, including, but not limited to, the duties of a seller or broker under this article, or the duties of a seller or broker licensee under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 36.Section 2079.10a of the Civil Code is amended to read:2079.10a.(a)Every lease or rental agreement for residential real property entered into on or after July 1, 1999, and every contract for the sale of residential real property comprised of one to four dwelling units entered into on or after that date, shall contain, in not less than 8-point type, a notice as specified in paragraph (1), (2), or (3).
(1)A contract entered into by the parties on or after July 1, 1999, and before September 1, 2005, shall contain the following notice:
Notice: The California Department of Justice, sheriffs departments, police departments serving jurisdictions of 200,000 or more, and many other local law enforcement authorities maintain for public access a database of the locations of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice also maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a 900 telephone service. Callers must shall have specific information about individuals they are checking. Information regarding neighborhoods is not available through the 900 telephone service.
(2)A contract entered into by the parties on or after September 1, 2005, and before April 1, 2006, shall contain either the notice specified in paragraph (1) or the notice specified in paragraph (3).
(3)A contract entered into by the parties on or after April 1, 2006, shall contain the following notice:
Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offenders criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides.
(b)Subject to subdivision (c), upon delivery of the notice to the lessee or transferee buyer of the real property, the lessor, seller, or broker is not required to provide information in addition to that contained in the notice regarding the proximity of registered sex offenders. The information in the notice shall be deemed to be adequate to inform the lessee or transferee buyer about the existence of a statewide database of the locations of registered sex offenders and information from the database regarding those locations. The information in the notice shall not give rise to any cause of action against the disclosing party by a registered sex offender.
(c)Notwithstanding subdivisions (a) and (b), nothing in this section shall alter any existing duty of the lessor, seller, or broker licensee under any other statute or decisional law including, but not limited to, the duties of a lessor, seller, or broker under this article, or the duties of a seller or broker licensee under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.
SEC. 37.Section 2079.13 of the Civil Code is repealed.2079.13.As used in Sections 2079.7, and 2079.14 to 2079.24, inclusive, the following terms have the following meanings:(a)Agent means a person acting under provisions of Title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained.(b)Associate licensee means a person who is licensed as a real estate broker or salesperson under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code and who is either licensed under a broker or has entered into a written contract with a broker to act as the brokers agent in connection with acts requiring a real estate license and to function under the brokers supervision in the capacity of an associate licensee.The agent in the real property transaction bears responsibility for his or her associate licensees who perform as agents of the agent. When an associate licensee owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by the broker for whom the associate licensee functions.(c)Buyer means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. Buyer includes vendee or lessee.(d)Commercial real property means all real property in the state, except single-family residential real property, dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, mobilehomes, as defined in Section 798.3, or recreational vehicles, as defined in Section 799.29.(e)Dual agent means an agent acting, either directly or through an associate licensee, as agent for both the seller and the buyer in a real property transaction.(f)Listing agreement means a contract between an owner of real property and an agent, by which the agent has been authorized to sell the real property or to find or obtain a buyer.(g)Listing agent means a person who has obtained a listing of real property to act as an agent for compensation.(h)Listing price is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the listing agent.(i)Offering price is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property.(j)Offer to purchase means a written contract executed by a buyer acting through a selling agent that becomes the contract for the sale of the real property upon acceptance by the seller.(k)Real property means any estate specified by subdivision (1) or (2) of Section 761 in property that constitutes or is improved with one to four dwelling units, any commercial real property, any leasehold in these types of property exceeding one years duration, and mobilehomes, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code.(l)Real property transaction means a transaction for the sale of real property in which an agent is employed by one or more of the principals to act in that transaction, and includes a listing or an offer to purchase.(m)Sell, sale, or sold refers to a transaction for the transfer of real property from the seller to the buyer, and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one years duration.(n)Seller means the transferor in a real property transaction, and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. Seller includes both a vendor and a lessor.(o)Selling agent means a listing agent who acts alone, or an agent who acts in cooperation with a listing agent, and who sells or finds and obtains a buyer for the real property, or an agent who locates property for a buyer or who finds a buyer for a property for which no listing exists and presents an offer to purchase to the seller.(p)Subagent means a person to whom an agent delegates agency powers as provided in Article 5 (commencing with Section 2349) of Chapter 1 of Title 9. However, subagent does not include an associate licensee who is acting under the supervision of an agent in a real property transaction.SEC. 38.Section 2079.13 is added to the Civil Code, to read:2079.13.(a)For purposes of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(b)Notwithstanding subdivision (a), for the purposes of Sections 2079 to 2079.6, inclusive, and Sections 2079.9 to 2079.24, inclusive, owners and managers of multifamily residential properties improved by more than four residential units are not sellers and a lease of that property does not constitute a sale.
SEC. 39.Section 2079.14 of the Civil Code is amended to read:2079.14.Listing agents and selling agents A real estate licensee shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and, except as provided in subdivision (c), shall obtain a signed acknowledgment of receipt from that seller or buyer, except as provided in this section or Section 2079.15, as follows:
(a)The listing agent, sellers licensee, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement.
(b)The selling agent shall provide the disclosure form to the seller as soon as practicable prior to presenting the seller with an offer to purchase, unless the selling agent previously provided the seller with a copy of the disclosure form pursuant to subdivision (a).(c)Where the selling agent does not deal on a face-to-face basis with the seller, the disclosure form prepared by the selling agent may be furnished to the seller (and acknowledgment of receipt obtained for the selling agent from the seller) by the listing agent, or the selling agent may deliver the disclosure form by certified mail addressed to the seller at his or her last known address, in which case no signed acknowledgment of receipt is required.(d)(b)The selling agent buyers licensee shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyers offer to purchase, except that if purchase. If the offer to purchase is not prepared by the selling agent, buyers licensee, the selling agent buyers licensee shall present the disclosure form to the buyer not later than the next business day after the selling agent receives receiving the offer to purchase from the buyer.
SEC. 40.Section 2079.15 of the Civil Code is amended to read:2079.15.In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the agent, real estate licensee, or an associate licensee acting for an agent, a real estate licensee, shall set forth, sign, and date a written declaration of the facts of the refusal.
SEC. 41.Section 2079.16 of the Civil Code is amended to read:2079.16.The disclosure form required by Section 2079.14 shall have Sections 2079.13 to 2079.24, inclusive, excluding this section, printed on the back, and on the front of the disclosure form the following shall appear: contain at a minimum the following:
DISCLOSURE REGARDING
REAL ESTATE AGENCY RELATIONSHIP WITH LICENSEES
(As required by Section 2079.14 of the Civil Code)
When you enter into a discussion relationship with a real estate agent licensee regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent licensee in the transaction.
SELLERS AGENT LICENSE
A Sellers agent licensee under a listing agreement with the Seller acts as the agent licensee for the Seller only. A Sellers agent or a subagent of that agent licensee has the following affirmative obligations:
To the Seller:
A fiduciary duty of utmost
care, integrity, honesty, and loyalty in dealings with the Seller.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the agents licensees duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the agent licensee materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.
An agent is not obligatedA Sellers licensee may have other listing agreements with other Sellers. The affirmative duties to the Buyer and Seller set forth above in (a), (b) and (c) do not obligate a licensee to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above. or from other clients. Confidential information includes, but is not limited to, facts relating to the partys financial position, motivations, bargaining position, or other personal information that may impact price, such as that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.
BUYERS AGENT LICENSEE
A selling agentThe Buyers licensee may also be providing services to other Buyers in regard to the same or different properties. A licensee can, with a the Buyers consent, agreement, agree to act as agent licensee
for only the Buyer only. In these situations, the agent is not the Sellers agent, even if by agreement the agent
Buyer. The Buyers licensee may receive compensation for services rendered, either in full or in part from the Seller. An agent Seller, but that does not make the Buyers licensee the Sellers licensee. A licensee acting only for a Buyer has the following affirmative obligations:
To the Buyer:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Buyer.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the agents licensees duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the agent real estate licensee materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated
The affirmative duties to the Buyer and Seller set forth above in (a), (b) and (c) do not obligate a licensee to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above. or from other clients. Confidential information includes, but is not limited to, facts relating to the partys financial position, motivations, bargaining position, or other personal information that may impact price, such as that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.
AGENT LICENSEE REPRESENTING BOTH SELLER AND BUYER
A real estate agent, licensee, either acting directly or through one or more associate licensees, can legally be the agent of represent both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.
In a dual agency broker or dual licensee situation, the agent has dual broker and dual licensee have the following affirmative obligations to both the Seller and the Buyer:
(a)A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either the Seller or the Buyer.
(b)Other duties to the Seller and the Buyer as stated above in their respective sections.
In representing both Seller and Buyer, the agent dual broker or dual licensee may not, without the express permission of the respective party, disclose to the other party that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered. in that transaction any confidential information obtained from the other party that does not involve the affirmative duties set forth above in (a) and (b). Confidential information includes, but is not limited to, facts relating to the partys financial position, motivations, bargaining position, or other personal information that may impact price such as the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.
CONSUMER RESPONSIBILITY
Once you have decided on the offer you wish to make or accept, you will receive a confirmation of the licensee relationship. Please pay attention to that confirmation to make sure you are comfortable with that relationship and it reflects your understanding of it.
The above duties of the agent licensee in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. interests including reading all documents, reports, and disclosures. The Buyer has a duty to exercise reasonable care to protect himself or herself including obtaining and considering those facts which are known to or within the diligent attention and observation of the Buyer. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent licensee is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.
Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction.This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on the reverse hereof. Read it carefully.Agent Real Estate Broker(date) | Buyer/Seller(date) |
(Signature) | |
Associate Licensee(date) | Buyer/Seller(date) |
(Signature) | (Signature) |
(a)As soon as practicable, the selling agent buyers licensee shall disclose to the buyer and seller whether the selling agent licensee is acting in the real property transaction exclusively as the buyers agent, exclusively as the sellers agent, licensee, or as a dual agent licensee representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the selling agent buyers licensee prior to or coincident with execution of that contract by the buyer and the seller, respectively.
(b)As soon as practicable, the listing agent sellers licensee shall disclose to the seller whether the listing agent sellers licensee is acting in the real property transaction exclusively as the sellers agent, licensee, or as a dual agent broker representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the listing agent sellers licensee prior to or coincident with the execution of that contract by the seller.
(c)The confirmation required by subdivisions (a) and (b) shall be in the following form:
(Name of Listing Agent) is the agent of (check one):[]the seller exclusively; or[]both the buyer and seller. (Name of Selling Agent if not the same as the Listing Agent)is the agent of (check one):[]the buyer exclusively; or[]the seller exclusively; or[]both the buyer and seller.(Name of Sellers Broker, Brokerage firm and license number) is the broker of (check one): | |
[]the seller; or | |
[]both the buyer and seller. (dual broker) | |
(Name of Sellers Licensee and license number) is (check one): | |
[]is the Sellers Licensee. (salesperson or broker associate) | |
[]is both the Buyers and Sellers Licensee. (dual licensee) | |
(Name of Buyers Broker, Brokerage firm and license number) is the broker of (check one): | |
[]the buyer; or | |
[]both the buyer and seller. (dual broker) | |
(Name of Buyers Licensee and license number) is (check one): | |
[]the Buyers Licensee. (salesperson or broker associate) | |
[]both the Buyers and Sellers Licensee. (dual licensee) |
(d)The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. A licensees duty to provide disclosure and confirmation of representation in this section may be performed by a real estate salesperson or broker associate affiliated with that broker.
SEC. 43.Section 2079.18 of the Civil Code is repealed.2079.18.No selling agent in a real property transaction may act as an agent for the buyer only, when the selling agent is also acting as the listing agent in the transaction.SEC. 44.Section 2079.19 of the Civil Code is amended to read:2079.19.The payment of compensation or the obligation to pay compensation to an agent a real estate licensee by the seller or buyer is not necessarily determinative of a particular agency relationship between an agent a real estate licensee and the seller or buyer. Buyers and sellers may have a relationship with a real estate licensee established and governed by a written agreement or an agreement for services for licensed activity without an agency relationship. A listing agent sellers licensee and a selling agent buyers licensee may agree to share any compensation or commission paid, or any right to any compensation or commission for which an obligation arises as the result of a real estate transaction, and the terms of any such agreement shall not necessarily be determinative of a particular relationship.
SEC. 45.Section 2079.20 of the Civil Code is amended to read:2079.20.Nothing in this article prevents an agent a licensee from selecting, as a condition of the agents employment, selecting a specific form of agency relationship not specifically prohibited by this article if the requirements of Section 2079.14 and Section 2079.17 are complied with.
SEC. 46.Section 2079.21 of the Civil Code is repealed.2079.21.A dual agent shall not disclose to the buyer that the seller is willing to sell the property at a price less than the listing price, without the express written consent of the seller. A dual agent shall not disclose to the seller that the buyer is willing to pay a price greater than the offering price, without the express written consent of the buyer.This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price.SEC. 47.Section 2079.21 is added to the Civil Code, to read:2079.21.A dual licensee may not, without the express permission of a client, disclose to the other client any confidential information obtained from the other client that does not involve the affirmative duties set forth above. Confidential information includes, but is not limited to, facts relating to the clients financial position, motivations, bargaining position, or other personal information that may impact price such as the Seller will accept a price less than the listing price or that the buyer will pay a price greater than the price offered.
SEC. 48.Section 2079.22 of the Civil Code is amended to read:2079.22.Nothing in this article precludes a listing agent sellers licensee from also being a selling agent, and the combination of these functions in one agent does not, of itself, make that agent a dual agent. buyers licensee. If a seller or buyer in a transaction chooses to not be represented by a licensee, that does not, of itself, make that licensee a dual licensee.
SEC. 49.Section 2079.23 of the Civil Code is amended to read:2079.23.(a)A contract between the principal and agent real estate licensee may be modified or altered to change the agency relationship at any time before the performance of the act which is the object of the agency licensee services with the written consent of the parties to the agency relationship.
(b)A lender or an auction company retained by a lender to control aspects of a transaction of real property subject to this part, including validating the sales price, shall not require, as a condition of receiving the lenders approval of the transaction, the homeowner or listing agent any licensee to defend or indemnify the lender or auction company from any liability alleged to result from the actions of the lender or auction company. Any clause, provision, covenant, or agreement purporting to impose an obligation to defend or indemnify a lender or an auction company in violation of this subdivision is against public policy, void, and unenforceable.
SEC. 50.Section 2079.24 of the Civil Code is amended to read:2079.24.Nothing in this article shall be construed to either diminish the duty of disclosure owed to buyers and sellers by agents and licensees including their associate licensees, subagents, broker associates, salespersons, and employees or to relieve agents and licensees, including their associate licensees, subagents, broker associates, salespersons, and employees from liability for their conduct in connection with acts governed by this article or for any breach of a fiduciary duty or a duty of disclosure. article.
SEC. 51.This act shall not become operative unless ____ of the 201718 Regular Session, relating to real estate, is enacted and becomes effective on January 1, 2018.
|
Date
|
Status
|
|---|---|
| Sep 29, 2018 | Chaptered by Secretary of State - Chapter 907, Statutes of 2018. |
| Sep 29, 2018 | Approved by the Governor. |
| Sep 6, 2018 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 28, 2018 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Aug 22, 2018 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 24 pursuant to Assembly Rule 77. |
| Aug 22, 2018 | Read third time. Passed. Ordered to the Assembly. |
| Aug 7, 2018 | Read second time. Ordered to third reading. |
| Aug 6, 2018 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Jul 5, 2018 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 3, 2018 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 27). |
| Jun 19, 2018 | Read second time and amended. Re-referred to Com. on B. & F.I. |
| Jun 18, 2018 | From committee: Amend, and do pass as amended and re-refer to Com. on B. & F.I. (Ayes 7. Noes 0.) (June 12). |
| May 15, 2018 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD. |
| Mar 15, 2018 | Referred to Coms. on JUD. and B. & F.I. |
| Jan 29, 2018 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Jan 29, 2018 | Read third time. Passed. Ordered to the Senate. |
| Jan 22, 2018 | Read second time. Ordered to Consent Calendar. |
| Jan 18, 2018 | From committee: Do pass. To Consent Calendar. (Ayes 17. Noes 0.) (January 18). |
| Jan 16, 2018 | Re-referred to Com. on APPR. |
| Jan 12, 2018 | Read second time and amended. |
| Jan 11, 2018 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (January 9). |
| Apr 20, 2017 | In committee: Set, second hearing. Hearing canceled at the request of author. |
| Apr 17, 2017 | Re-referred to Com. on JUD. |
| Apr 6, 2017 | From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended. |
| Apr 3, 2017 | In committee: Hearing postponed by committee. |
| Mar 29, 2017 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Mar 13, 2017 | Referred to Com. on JUD. |
| Feb 19, 2017 | From printer. May be heard in committee March 21. |
| Feb 17, 2017 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 28, 2018 | AB 1289 ARAMBULA Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 22, 2018 | Assembly 3rd Reading AB1289 Arambula By Hill | Senate Floor |
Passed |
|
| Jun 27, 2018 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Banking and Financial Institutions |
Passed |
|
| Jun 12, 2018 | Do pass as amended, but first amend, and re-refer to the Committee on [Banking and Financial Institutions] | Senate Standing Committee on Judiciary |
Passed |
|
| Jan 29, 2018 | AB 1289 ARAMBULA Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Jan 18, 2018 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jan 9, 2018 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Judiciary |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| California Association Of Realtors | ** Support | Aug 8, 2018 |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 1289
Author:(Arambula)
As Amended Ver:July 5, 2018
Majority vote
ASSEMBLY: | 75-0 | (January 29, 2018) | SENATE: | 39-0 | (August 22, 2018) |
Original Committee Reference: JUD.
SUMMARY: Revises definitions of several key terms appearing throughout portions of the Civil Code governing the transfer of real property and associated disclosure requirements, and makes various other technical and clarifying changes. Specifically, this bill:
- Revises several definitions applicable to Civil Code Sections 2079.7 and 2079.14 to 2079.24, inclusive, including "selling agent" and "buyer’s agent," and standardizes the use of certain terms through the Real Estate Law within the Civil Code. For example, the term "sale" is changed to "transfer"; "transferor" is changed to "seller"; "transferee" is changed to "buyer"; and "selling agent" is changed to "buyer’s agent."
- Deletes various provisions scattered in the Civil Code that define key terms, and instead provides that the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code (BPC) shall apply. (Consolidation of these definitions in the BPC is actually carried out by AB 2884 (2018), not this bill.)
- Clarifies that a person who is a trustee of a property placed in a revocable trust, whether single or married, is not exempt from existing law requiring a Transfer Disclosure Statement (TDS) and a Natural Hazard Disclosure (NHD) to be provided when the property is sold in the course of administering the trust.
- Clarifies that a TDS is not required in connection with the sale of any property other than single-family residential property.
- Authorizes a revised TDS to be provided to a buyer through electronic means, as specified, and provides a buyer who receives an electronic version of a revised TDS up to five days in which to terminate his or her offer to purchase.
- Deletes provisions relieving third party experts from being responsible for information they include in a report or opinion prepared in conjunction with a TDS or NHD statement pursuant to a request by a prospective buyer, except as stated through a specified written statement.
- Revises and recasts existing law prohibiting a dual agent, without obtaining express permission, from disclosing to the seller any confidential information, as defined, that is obtained from the buyer, and conversely, from disclosing to the buyer any confidential information obtained from the seller. Defines "confidential information" to mean facts relating to the client’s financial position, motivations, bargaining position, or other personal information that may impact price, such as that the seller is willing to accept a price less than the listing price or that the buyer is willing to pay a price greater than the price offered.
- Establishes contingent enactment with AB 2884 (Irwin) of the current legislative session; specifically, that this bill shall not become operative unless AB 2884 is also enacted and becomes effective on January 1, 2019.
- Makes other technical and clarifying amendments.
The Senate amendments:
- Clarify that the period of time the prospective buyer has in which to terminate his or her offer commences when Sections I, II, and III in the form described in Civil Code Section 1102.6 are completed and delivered to the buyer or buyer’s agent.
- Clarify that nothing in this bill shall be construed to affect any of the following:
- A real estate broker’s duties under existing statutory or common law as an agent of a person who retains that broker to perform acts for which a license is required under this division.
- Any fiduciary duties owed by a real estate broker to a person who retains that broker to perform acts for which a license is required under this division.
- Any duty of disclosure or any other duties or obligations of a real estate broker, which arise under this division or other existing, applicable California law, including common law.
- Any duties or obligations of a salesperson or a broker associate, which arise under this division or existing, applicable California law, including common law, and duties and obligations to the salesperson’s or broker associate’s responsible broker.
- A responsible broker’s duty of supervision and oversight for the acts of retained salespersons or broker associates, which arise under this division or other existing, applicable California law, including common law.
- Correct a reference in the time by which single-family residences must be equipped with water-conserving plumbing fixtures.
- Add a leasehold interest in real property consisting of multiunit residential property with more than four dwelling units to the list of contracts that must contain a specified notice about the state’s sex offender website (www.meganslaw.ca.gov).
- Replace references to associate licensee with references to salesperson or broker associate.
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS: This bill, sponsored by the California Association of Realtors (CAR), seeks to make various changes to existing law that governs the transfer of real property and the associated duties that real estate agents have to disclose information to buyers and sellers in residential real estate transactions, and in some cases, commercial transactions as well. According to the author, "AB 1289 makes a number of non-controversial changes to the Civil Code related to real property disclosure requirements… in order to provide greater clarity to consumers and practitioners regarding terminology, definitions and existing practice."
Consolidation and revision of definitions used in real estate law. Existing law, known as the Real Estate Law (Part 1 of Division 4 of the Business & Professions Code (BPC), commencing with Section 10000) provides for the licensure and regulation of real estate brokers and sales persons by the Real Estate Commissioner, the chief officer of the newly renamed Bureau of Real Estate (BRE). In addition to the Real Estate Law in the BPC, however, there are several articles in the Civil Code that govern the transfer of real property, establish various duties and disclosure requirements, and otherwise regulate the conduct of real estate brokers, agents, and salespersons involved in these transactions for the benefit of the principal buyers and sellers. CAR notes that key terms are defined at multiple locations within the Civil Code, and sometimes employ non-identical definitions for the same term. In addition, certain terms are sometimes used interchangeably, varying from section to section, causing potential confusion (e.g. the interchangeable use of the terms "transferor" and "seller"). Finally, CAR contends that certain terms (e.g. "selling agent") should simply be changed and re-defined to be more current and understandable.
This bill is intended to work in conjunction with another CAR-sponsored bill, AB 2884 (Irwin), to help standardize the use of key real estate terms, and to consolidate the definitions of all these terms into a single chapter of the Real Estate Law in the BPC—in the process, removing them from the Civil Code and defining them by reference to the BPC. For this reason, both bills contain contingent enactment language which establishes that neither bill becomes operative unless both are signed into law by the Governor by the end of 2018.
Opponents argued that a consequence of the bill, whether intended or not, would have been to effectively eliminate agency and ultimately fiduciary relationships among licensed brokers and their principals in real estate transactions. Some were particularly concerned about provisions in the bill that could be interpreted to allow a person to act as a real estate licensee engaging in licensed activity for a client, but not be their agent; in other words, seemingly permitting the actor to negotiate the duties of an agent through a transactional licensee relationship. According to the author and sponsor, however, it is not their intent to affect agency relationships or fiduciary duties under existing law simply by consolidating and standardizing the operative definitions. To address these concerns, the author has amended the bill to: 1) restore key definitions, including "agent", to Civil Code Section 2079.13, rather than defining such terms by reference to the BPC; 2) restore use of the term "agent" throughout sections of the Civil Code, instead of the previously designated term "licensee"; and 3) consolidate other definitions in the BPC where doing so does not potentially alter agency relationships. In addition, recent Senate amendments rewrite the savings clause in the bill that is intended to clarify that nothing in this bill shall be construed to affect existing duties and obligations of a real estate broker. Specifically, the amended savings clause specifies that these duties and obligations include, among other things: 1) any fiduciary duties owed by a real estate broker to a person who retains that broker to perform acts for which a license is required; 2) any duty of disclosure or any other duties or obligations of a real estate broker, which arise under applicable California law, including common law; and 3) a responsible broker's duty of supervision and oversight for the acts of retained salespersons or broker associates.
Responsibility of third party professionals in preparing expert reports or opinions. Sellers of real estate and their agents often employ the services of professional experts, such as engineers, land surveyors, and pest control operators, to inspect the property and prepare a report or opinion dealing with matters within the scope of the expert's license or expertise. Under existing law, sellers and their agents are not liable for errors, inaccuracy or omissions in information that must be provided to prospective buyers pursuant to TDS and NHD disclosure requirements (Civil Code Sections 1102.4 and 1103.4, respectively) if the error, inaccuracy, or omission was 1) not within the personal knowledge of the seller or his or her agent; 2) was based on information timely provided by the expert that is required to be disclosed; and 3) ordinary care was exercised in obtaining it. When an expert responds to a request for such a report from a prospective buyer, existing law allows the expert to indicate, in writing, an understanding the information provided will be used in fulfilling the TDS and NHD requirements, which then relieves the expert from responsibility for any items of information other than those expressly set forth in the statement.
The author and sponsor contend that professional experts should not be able "to disavow responsibility for what is in their reports," and that at least one court has held this is so, in the case of Leko v. Cornerstone Building Inspection Service, et al. (2001) 86 Cal.App. 4th 1109, 103 Cal. Rptr.2d 858. According to CAR, the bill seeks to codify the holding in Leko; specifically, recent amendments continue to allow an expert to indicate an understanding that the information provided will be used in fulfilling TDS and NHD disclosure requirements, but repeal the rule that, in furnishing such a statement, the expert is not responsible for any items of information other than those expressly set forth in the statement.
Dual agent's duty to protect confidential information impacting price. Existing law, Civil Code Section 2079.21, expressly prohibits a dual agent from: 1) disclosing to the buyer that the seller is willing to sell the property at a price less than the listing price, without the express written consent of the seller; and 2) disclosing to the seller that the buyer is willing to pay a price greater than the offering price, without the express written consent of the buyer. In addition, the section clarifies that these rules do not alter in any way the duty of a dual agent to any principal "with respect to confidential information other than price."
According to the sponsor, ambiguity among practitioners in the field over interpretation of the phrase "confidential information other than price" allows some questionable circumstances to develop that are not fully protective of buyers and sellers in a dual agency situation. For example, is if the fact that a seller has a serious illness – which is not in itself about a property's price – the type of information that may be disclosed by the dual agent under existing law. In order to clarify this issue, recent amendments to the bill revise and recast Civil Code Section 2079.21, with the most notable change being that "confidential information" is defined to mean facts relating to the client’s financial position, motivations, bargaining position, or other personal information that may impact price, such as that the seller is willing to accept a price less than the listing price or that the buyer is willing to pay a price greater than the price offered. The bill revises and recasts existing law that to expressly prohibit dual agents from disclosing any confidential information, as defined above, from one principal to the other principal.
Clarification of disclosure requirements for property in a revocable (living) trust. Existing law, Civil Code Section 1102.2(d) exempts sales by specified fiduciaries from TDS disclosure requirements. According to CAR, these exemptions make sense because such persons are unlikely to have much knowledge about the property being sold. However, subdivision (d) also includes a special exemption from this general exemption for a person who is sole trustee (emphasis added) of a revocable trust if that person is a former owner of the property or an occupant in possession within the preceding year—in other words, a person who is deemed likely to have the knowledge to complete the TDS. CAR notes that this creates an apparent loophole in which a married couple must provide a TDS if they live in the property and hold it as joint tenants, but the same couple become exempt from the requirements simply by placing it in a living trust despite no other changes.
Accordingly, this bill clarifies that married persons who are trustees of property in a living trust are not exempt from providing the required TDS by virtue of the fact that neither spouse is a "sole trustee" of the living trust. Because the same loophole also exists in Civil Code Section 1103.1(a)(3), with respect to NHD disclosure requirements, the bill makes identical changes to that section in order to close the loophole and effectuate the same rule for NHD statements.
Clarification that a TDS does not need to be provided for the non-residential portion of a mixed-use property. Existing law, Civil Code Section 1102(a), establishes that TDS disclosure requirements apply to sales of real property which contain one to four residential units. According to the author and sponsor, the legislative history of the TDS statute supports the principle that a TDS is not required for the non-residential portion of a mixed-use property. Proponents note, for example, that: 1) the Legislature has never enacted a TDS requirement for commercial properties; 2) broker inspection duties only apply to residential portions under existing law; and 3) the content of the Transfer Disclosure Statement itself indicates that the TDS is not meant to apply to commercial, agricultural, or other non-residential uses of the property. This bill specifically provides that the TDS disclosure requirement does not apply to the sale of any portion of a property not constituting residential property with one to four dwelling units. The Judiciary Committee notes that there is relevant case law on this subject that generally supports the author and sponsor's position. (Richman v. Hartley (2014) 224 Cal.App.4th 1182.)
This bill closes a loophole in existing law pertaining to when the period during which an agreement can be rescinded commences. Existing law, Civil Code Section 1102.3, requires the seller to provide the TDS to the buyer and then allows the buyer to have three days to cancel the transaction after the seller delivers the TDS in person, or five days if the seller mails the TDS to the buyer. According to CAR, this has been universally treated as meaning that the buyer cancellation right is triggered once the seller delivers the TDS to the buyer—in other words, after the seller and listing agent (if applicable) portions of the TDS are filled out, as that is when personal or mail delivery would then occur. Recently, however, CAR reports that "creative buyers and their agents have been arguing that the rescission period begins once the buyer’s agent fills out their visual inspection section . . . (in an attempt to) 'game' the system by essentially creating an endless recession period for the buyer because the buyer’s agent simply delays filling out his or her portion." Accordingly, this bill seeks to close this apparent loophole in the law by clarifying that the period of time a prospective buyer has in which to terminate his or her offer to purchase a property after receiving a revised TDS begins when Sections I, II, and III of the revised TDS are completed and delivered to the buyer or buyer’s agent.
Analysis Prepared by: Anthony Lew / JUD. / (916) 319-2334 FN: 0003934
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 1289
:
SENATE JUDICIARY COMMITTEE: 7-0, 6/12/18
AYES: Jackson, Moorlach, Anderson, Hertzberg, Monning, Stern, Wieckowski
SENATE BANKING & F.I. COMMITTEE: 6-0, 6/27/18
AYES: Bradford, Vidak, Galgiani, Hueso, Lara, Portantino
NO VOTE RECORDED: Gaines
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 75-0, 1/29/18 (Consent) - See last page for vote
SOURCE: California Association of Realtors
DIGEST: This bill, which is paired with AB 2884 (Irwin, 2018) through contingent enactment, updates terminology, consolidates definitions, clarifies vague provisions, and makes a series of minor modifications to the laws relating to real estate brokers and real property transactions. This bill also makes explicit that its terms must not be construed to alter any agency relationships, fiduciary duties, disclosure requirements, or supervision obligations associated with real estate brokers and real property transactions.
Existing law:
- Defines the terms “agency,” “property, “sell,” “sale,” buyer,” “appraiser,” “listing,” “exclusive right to sell listing,” “exclusive agency listing,” “open listing,” “listing agent,” “selling agent,” and “sold” in the article of the Civil Code governing Agency Listings for the Transfer of Certain Property (Article 6 of Chapter 1 of Title 4 of Part 4 of Division 2 of the Civil Code; Civil Code Section 1086 et seq.)
- Defines the terms “agent,” “associate licensee,” “buyer,” “commercial real property,” “dual agent,” “listing agreement,” “listing agent,” “listing price,” “offering price,” “offer to purchase,” “real property,” “real property transaction,” “sell,” “sale,” “sold,” “seller,” “selling agent,” and “subagent” for purposes of Civil Code Sections 2079.7 and 2079.14 through 2079.24, inclusive (Duty to Prospective Purchasers of Real Property).
- Requires a transferor of residential property, as defined, to provide the transferee with certain disclosures about the property through use of a statutorily prescribed Real Estate Transfer Disclosure Statement (TDS), as specified (Civil Code Section 1102 et seq.) and, if applicable, with a statutorily prescribed Natural Hazard Disclosure Statement (NHD; Civil Code Sections 1103.1 et seq.).
- Exempts certain transfers from the TDS and NHD requirement, but does not exempt the transfer if the trustee is a natural person who is sole trustee of a revocable trust, if he or she is a former owner of the property or an occupant in possession of the property within the preceding year (Civil Code Section 1102.2 and 1103.1).
- Provides that if a TDS or materially amended TDS is delivered to the transferee after the execution of an offer to purchase, the transferee has three days after delivery of the revised document in person or five days after delivery by deposit in the mail to terminate his or her offer, as specified (Civil Code Section 1102.3).
- Describes, within the TDS, the duties of a dual agent by providing that, in representing both seller and buyer, a dual agent may not, without the express permission of the respective party, disclose to the other party that the seller will accept a price less than the listing price or that the buyer will pay a price greater than the price offered (Civil Code Section 2079.16).
- Describes the duty of the broker who has obtained the offer made by the buyer to deliver the TDS and NHD to the buyer when there is more than one real estate broker involved in a real estate transaction (Civil Code Sections 1102.12 and 1103.12).
- Requires the selling agent (i.e., the buyer’s agent), as soon as practicable, to disclose to the buyer and seller whether the selling agent is acting in the real property transaction exclusively as the buyer’s agent, exclusively as the seller’s agent, or as a dual agent representing both the buyer and the seller. Requires the listing agent (i.e., the seller’s agent), as soon as practicable, to disclose to the seller whether the listing agent is acting in the real property transaction exclusively as the seller’s agent or as a dual agent representing both the buyer and the seller (Civil Code Section 2079.17).
This bill:
- Deletes the definitions of various real estate terms from the Civil Code and replaces them with a reference to the chapter of the Business and Professions Code where revised definitions for those terms can now be found. Deletes terms include “property, “sell,” “sale,” buyer,” “appraiser,” “listing,” “exclusive right to sell listing,” “exclusive agency listing,” “open listing,” “listing agent,” “selling agent,” and “sold.”
- Revises the definitions of certain real estate terms that remain in the Civil Code to ensure parallelism with the way in which those terms will be defined in the Business and Professions Code following enactment of AB 2884 from the current legislative session (e.g., “agent,” “buyer,” “commercial real property,” “dual agent,” “listing agreement,” “seller’s agent,” “real property,” “sell,” “sale,” “sold,” “seller,” and “buyer’s agent”). Makes several conforming changes to provisions of the Civil Code to reflect these revised definitions.
- Clarifies that a person who is a trustee of a property placed in a revocable trust, whether single or married, is not exempt from existing law requiring a TDS and NHD to be provided when the property is sold in the course of administering the trust.
- Authorizes a revised TDS to be provided to a buyer through electronic means, as specified, and provides a buyer who receives an electronic version of a revised TDS up to five days in which to terminate his or her offer to purchase.
- Clarifies that a TDS is not required in connection with the sale of any property other than single-family residential property.
- Provides that the period of time a prospective buyer has in which to terminate his or her offer to purchase a property after receiving a revised TDS begins when Sections I, II, and III of the revised TDS are completed and delivered to the buyer or buyer’s agent. Provides that a real estate agent may complete his or her portion of the required disclosure by providing all of the information on the agent’s inspection disclosure.
- Updates existing law to reflect current practice discontinuing use of the seller’s agent subagency model, a model which used to treat the buyer’s agent as a subagent of the seller’s agent.
- Provides that a dual agent may not, without the express permission of the respective party, disclose confidential information, including, but not limited to, facts relating to either the buyer’s or seller’s financial position, motivations, bargaining position, or other personal information that may impact price, including the seller’s willingness to accept a price less than the listing price or the buyer’s willingness to pay a price greater than the price offered.
- Clarifies that an agent’s duty to disclose his or her agency relationship to the buyer and seller in a real estate transaction may be performed by a real estate sales person or broker associate affiliated with the broker who has the duty to disclose.
- Adds that a leasehold interest in real property consisting of multiunit residential property with more than four dwelling units to the list of contracts that must contain a specified notice about the state’s sex offender Web site (www.meganslaw.ca.gov).
- Clarifies that nothing in this bill or in AB 2884 (a companion bill to which this bill is double-joined via contingent enactment) shall be construed to affect any agency relationships in a real estate transaction, as specified.
Real estate transactions can be quite complex. For residential home buyers and sellers, this complexity may be compounded by lack of experience and the stress associated with making what is frequently among the most significant financial transactions of a person’s life. Real estate brokers, who have both training and experience in the field, can help guide home buyers and sellers through the deal, yet brokers themselves operate under a complex set of relationships and incentives.
Not surprisingly, therefore, both real estate transactions and the role of real estate brokers have long been regulated by the State. California enacted its Real Estate Law almost exactly a century ago. (Gates, Chapter 605, Statutes of 1919; Bus. & Prof. Code Sec. 10000 et seq.) According to the sponsors of this bill, the last major update to these laws took place forty years ago and the field has evolved significantly in the interim. Some of the terminology contained in existing law is outmoded. In addition, the use of terms across the existing law is not always consistent, breeding some unnecessary confusion among practitioners and consumers alike. The problem is exacerbated to some degree by the fact that, while the primary law governing real estate transactions sits in the Business and Professions Code, there are important related laws housed in the Civil Code.
As introduced, this bill was intended as a more comprehensive update to the laws governing real estate brokers and transactions. Due to early concerns regarding the potential effects on agency relationships and fiduciary obligations, however, this bill has been narrowed significantly.
In its present form, this bill makes a series of minor and relatively non-controversial changes to Civil Code sections pertaining to real estate transactions. (This bill’s companion, AB 2884, makes similar changes to the Business and Professions Code sections dealing with real estate.) In general, the changes can be characterized as updating terminology, consolidating definitions, clarifying vague provisions, and making a series of minor modifications to the laws relating to real estate brokers and real property transactions. The minor modifications are summarized in the Comments, below.
Comments
Confirmation that the Bill Would Not Impact Longstanding Doctrines Regarding Agency Relationships and Fiduciary Duties in the Context of Real Estate
As introduced, this bill would have made additional modifications to the terminology used to refer to the role of real estate agents. In particular, the original bill replaced all statutory references to “agents” with the term “licensee.” The California Association of Realtors (CAR), who are the sponsors of this bill, asserted that this change was needed because the term “agent” was imprecise: all agents are licensees but not all licensees are agents. CAR stated that no substantive change was intended by the change in terminology.
The approach drew opposition from consumer advocates, however, based on concerns that removing the term “agent,” in this way might have the effect of undermining longstanding agency and fiduciary duty doctrines that hold real estate brokers accountable for the actions of all those operating under their license. The Assembly Committee on Judiciary analysis of this bill sets forth these concerns in detail. (See Assem. Com. on Judiciary, Rep. on AB 1289 (2017-2018 Reg. Sess.) pp. 6-7.) Given that altering these longstanding doctrines was not CAR’s stated purpose for sponsoring this bill, it ultimately agreed to put the word “agent” back into the bill, tied to a definition that affirms that real estate brokers remain accountable for those operating under them. This definition can be found in Section 1 of the bill among the proposed amendments to Civil Code Section 1086.
To further emphasize the point, this bill was further amended in the Senate Bank and Financial Institutions Committee to include the following “savings clause”:
10010.5. (a) Nothing in Assembly Bill 1289 of the 2017-18 Regular Session or Assembly Bill 2884 of the 2017–18 Regular Session shall be construed to affect any of the following:
(1) A real estate broker’s duties under existing statutory or common law as an agent of a person who retains that broker to perform acts for which a license is required under this division.
(2) Any fiduciary duties owed by a real estate broker to a person who retains that broker to perform acts for which a license is required under this division.
(3) Any duty of disclosure or any other duties or obligations of a real estate broker, which arise under this division or other existing, applicable California law, including common law.
(4) Any duties or obligations of a salesperson or a broker associate, which arise under this division or existing, applicable California law, including common law, including duties and obligations to the salesperson’s or broker associate’s responsible broker.
(5) A responsible broker’s duty of supervision and oversight for the acts of retained salespersons or broker associates, which arise under this division or other existing, applicable California law, including common law.
Together, these amendments make it crystal clear that this bill will not in any way alter the laws governing the agency relationships, fiduciary duties, and associated liability between all participants in a real estate transaction. On that basis, the Consumer Attorneys of California has removed its opposition.
Contingent Enactment Provision
This bill contains a contingent enactment clause, meaning that its terms will not become operative unless AB 2884 is also enacted. Like this bill, AB 2884 makes revisions and modifications to the laws governing real estate agents and real property transactions.
Whereas this bill alters real estate related components of the Civil Code, however, AB 2884 makes changes to real estate related provisions in the Business and Professions Code. Of particular relevance to this bill, AB 2884 operates to gather most of the real estate related definitions scattered through the two codes, place them at the beginning of the Real Estate Law in the Business and Professions Code, and make them consistent. This has the laudable effect of making the laws related to real estate transaction somewhat easier to read and to follow. However, the Legislature and legislative staff will need to be especially attentive to the interplay between the two codes in the future since, if this bill and AB 2884 are enacted, any proposed change to the definitions within the Business and Professions Code would have potential effects across a number of provisions within the Civil Code as well. AB 2884 is currently pending consideration on the Senate Floor.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
California Association of Realtors (source)
None received
ARGUMENTS IN SUPPORT: According to the author:
AB 1289 makes non-controversial changes and modernizes the Real Estate Law and will provide greater clarity to consumers and practitioners regarding terminology, definitions and existing practice.
This bill resolves matters of importance to consumers and practitioners in this area. It consolidates terms so that usage is more understandable such as replacing transferor with seller. It removes archaic terms, replacing the confusing term “selling agent” by buyer’s agent for “an agent of a buyer”. Finally, it makes non-controversial amendments to clarify issues with existing disclosure law.
As sponsor of this bill, the California Association of Realtors writes:
This bill updates the real estate law, which has not been revised in decades, to reflect changes in both practice and law. This has been done without reducing consumer protections.
ASSEMBLY FLOOR: 75-0, 1/29/18
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mathis, Mayes, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Gallagher, McCarty
Prepared by: Timothy Griffiths / JUD. / (916) 651-4113
8/8/18 18:22:50
**** END ****
SENATE COMMITTEE ON
BANKING AND FINANCIAL INSTITUTIONS
Senator Steven Bradford, Chair
2017 - 2018 Regular
Bill No: AB 1289 Hearing Date: June 27, 2018
Author: | Arambula | ||
Version: | June 19, 2018 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Eileen Newhall | ||
Subject: Real property disclosure requirements
SUMMARY
This bill updates provisions of the Civil Code affecting the transfer of real property to provide greater clarity for consumers and practitioners around terminology, definitions, and existing practice.
EXISTING LAW
- Defines the terms “agency,” “property, “sell,” “sale,” buyer,” “appraiser,” “listing,” “exclusive right to sell listing,” “exclusive agency listing,” “open listing,” “listing agent,” “selling agent,” and “sold” in the article of the Civil Code governing Agency Listings for the Transfer of Certain Property (Article 6 of Chapter 1 of Title 4 of Part 4 of Division 2 of the Civil Code; Civil Code Section 1086 et seq.)
- Defines the terms “agent,” “associate licensee,” “buyer,” “commercial real property,” “dual agent,” “listing agreement,” “listing agent,” “listing price,” “offering price,” “offer to purchase,” “real property,” “real property transaction,” “sell,” “sale,” “sold,” “seller,” “selling agent,” and “subagent” for purposes of Civil Code Sections 2079.7 and 2079.14 through 2079.24, inclusive (Duty to Prospective Purchasers of Real Property).
- Requires a transferor of residential property, as defined, to provide the transferee with certain disclosures about the property through use of a statutorily prescribed Real Estate Transfer Disclosure Statement (TDS), as specified (Civil Code Section 1102 et seq.) and, if applicable, with a statutorily prescribed Natural Hazard Disclosure Statement (NHD; Civil Code Sections 1103.1 et seq.).
- Exempts certain transfers from the TDS and NHD requirement, but does not exempt the transfer if the trustee is a natural person who is sole trustee of a revocable trust, if he or she is a former owner of the property or an occupant in possession of the property within the preceding year (Civil Code Section 1102.2 and 1103.1).
- Provides that if a TDS or materially amended TDS is delivered to the transferee after the execution of an offer to purchase, the transferee has three days after delivery of the revised document in person or five days after delivery by deposit in the mail to terminate his or her offer, as specified (Civil Code Section 1102.3).
- Within the TDS, describes the duties of a dual agent by providing that, in representing both seller and buyer, a dual agent may not, without the express permission of the respective party, disclose to the other party that the seller will accept a price less than the listing price or that the buyer will pay a price greater than the price offered (Civil Code Section 2079.16).
- Describes the duty of the broker who has obtained the offer made by the buyer to deliver the TDS and NHD to the buyer when there is more than one real estate broker involved in a real estate transaction (Civil Code Sections 1102.12 and 1103.12).
- Requires the selling agent (i.e., the buyer’s agent), as soon as practicable, to disclose to the buyer and seller whether the selling agent is acting in the real property transaction exclusively as the buyer’s agent, exclusively as the seller’s agent, or as a dual agent representing both the buyer and the seller. Requires the listing agent (i.e., the seller’s agent), as soon as practicable, to disclose to the seller whether the listing agent is acting in the real property transaction exclusively as the seller’s agent or as a dual agent representing both the buyer and the seller (Civil Code Section 2079.17).
THIS BILL
- Deletes the definitions of various real estate terms from the Civil Code and replaces them with a reference to the chapter of the Business and Professions Code where revised definitions for those terms can now be found. Deleted terms include “property, “sell,” “sale,” buyer,” “appraiser,” “listing,” “exclusive right to sell listing,” “exclusive agency listing,” “open listing,” “listing agent,” “selling agent,” and “sold.”
- Revises the definitions of certain real estate terms that remain in the Civil Code to ensure parallelism with the way in which those terms will be defined in the Business and Professions Code following enactment of AB 2884 from the current Legislative Session (e.g., “agent,” “buyer,” “commercial real property,” “dual agent,” “listing agreement,” “seller’s agent,” “real property,” “sell,” “sale,” “sold,” “seller,” and “buyer’s agent”). Makes several conforming changes to provisions of the Civil Code to reflect these revised definitions.
- Clarifies that a person who is a trustee of a property placed in a revocable trust, whether single or married, is not exempt from existing law requiring a TDS and NHD to be provided when the property is sold in the course of administering the trust.
- Provides that a TDS is not required in connection with the sale of any property other than residential property with one to four dwelling units.
- Authorizes a revised TDS to be provided to a buyer through electronic means, as specified, and provides a buyer who receives an electronic version of a revised TDS up to five days in which to terminate his or her offer to purchase.
- Provides that a revised TDS is complete when Sections I, II, and III of the form are completed and delivered. Provides that a real estate agent may complete his or her portion of the required disclosure by providing all of the information on the agent’s inspection disclosure.
- Describes which person is required to provide the TDS and NHD to a buyer, in each of three different scenarios (two real estate agents involved in the transaction, one real estate agent involved in the transaction, and no real estate agents involved in the transaction).
- Updates existing law to reflect current practice discontinuing use of the seller’s agent subagency model, a model which used to treat the buyer’s agent as a subagent of the seller’s agent.
- Provides that a dual agent may not, without the express permission of the respective party, disclose confidential information, including, but not limited to, facts relating to either the buyer’s or seller’s financial position, motivations, bargaining position, or other personal information that may impact price, including the seller’s willingness to accept a price less than the listing price or the buyer’s willingness to pay a price greater than the price offered.
- Clarifies that an agent’s duty to disclose his or her agency relationship to the buyer and seller in a real estate transaction may be performed by a real estate sales person or broker associate affiliated with the broker who has the duty to disclose.
- Clarifies that nothing in the bill or in AB 2884 (a companion bill to which this bill is double-joined via contingent enactment) shall be construed to affect any agency relationships in a real estate transaction, as specified.
COMMENTS
- Purpose: This bill is sponsored by the California Association of Realtors (CAR) to update the Real Estate Law and, in doing so, to provide greater clarity for consumers and practitioners with regard to terminology, definitions, and existing practice.
- Background: This bill is double-joined to AB 2884 (Irwin) from the current Legislative Session via contingent enactment. Thus, this bill will only become operative if AB 2884 is signed, and AB 2884 will only become law, if this bill is signed. AB 1289 is intended to update provisions of the Civil Code under which licensed real estate activities are conducted, and AB 2884 is intended to update provisions of the Business and Professions Code under which licensed real estate activities are conducted. Taken together, the two bills are intended to continue the process, begun in 2016 through enactment of AB 685 (Irwin), Chapter 177, Statutes of 2016, of modernizing the provisions of law which govern licensed real estate activities.
- Discussion: In 2016, this bill’s sponsor backed legislation that would have significantly amended the duties and obligations of real estate licensees. Although those significant changes were never enacted (the bill into which they were placed, AB 685, Irwin, was subsequently amended to remove those provisions and replace them with nonsubstantive language), interested parties considering subsequent proposals backed by this bill’s sponsor have sought assurances that the changes being sought do not undermine existing protections available under the law to persons who use the services of real estate licensees.
The author of this bill will be proposing extensive amendments to his measure in Committee, which reflect the desire of interested parties to ensure that the changes proposed in this bill do not change existing protections available under the Civil Code. The most significant provision of the amendments is a so-called “savings clause.” Because of its importance, that savings clause is reprinted below. A summary of the additional changes made by the amendments follows. - Savings Clause: This bill’s author will present amendments in Committee to codify the following language as Civil Code Section 1102.1(d) and to codify references to that code section in the other articles of the Civil Code which this bill amends. This savings clause will be amended into the bill in lieu of the savings clause the bill currently contains.
10010.5. (a) Nothing in Assembly Bill 1289 of the 2017-18 Regular Session or Assembly Bill 2884 of the 2017–18 Regular Session shall be construed to affect any of the following: - A real estate broker’s duties under existing statutory or common law as an agent of a person who retains that broker to perform acts for which a license is required under this division.
- Any fiduciary duties owed by a real estate broker to a person who retains that broker to perform acts for which a license is required under this division.
- Any duty of disclosure or any other duties or obligations of a real estate broker, which arise under this division or other existing, applicable California law, including common law.
- Any duties or obligations of a salesperson or a broker associate, which arise under this division or existing, applicable California law, including common law, including duties and obligations to the salesperson’s or broker associate’s responsible broker.
- A responsible broker’s duty of supervision and oversight for the acts of retained salespersons or broker associates, which arise under this division or other existing, applicable California law, including common law.
For purposes of this subdivision, references to “existing statutory law” and “existing, applicable California law” refer to the law as it read, immediately prior to enactment of Assembly Bill 1289 of the 2017-18 Regular Session and Assembly Bill 2884 of the 2017–18 Regular Session.
- Summary of Additional Amendments to Be Offered in Committee: Other substantive amendments to be offered by the author in Committee: a) clarify that a TDS is not required in connection with the sale of any property other than single-family residential property; b) strike a finding that a revised TDS is complete when Sections I, II, and II of the revised TDS are completed and delivered and insert a provision which provides that the period of time a prospective buyer has in which to terminate his or her offer to purchase a property after receiving a revised TDS begins when Sections I, II, and III of the revised TDS are completed and delivered to the buyer or buyer’s agent; c) correct a reference in the time by which single-family residences must be equipped with water-conserving plumbing fixtures; d) clarify that revisions made by this bill to a section of law that contains exemptions from the requirement to provide an NHD are nonsubstantive; e) add a leasehold interest in real property consisting of multiunit residential property with more than four dwelling units to the list of contracts that must contain a specified notice about the state’s sex offender website (www.meganslaw.ca.gov); and f) replace references to associate licensee with references to salesperson or broker associate.
- Support: The California Association of Realtors (CAR) is sponsoring AB 1289 to “update the real estate law, which has not been revised in decades, to reflect changes in both practice and law.” Specifically, AB 1289: uses terms exclusively rather than interchangeably (for example, “buyer” replaces “purchaser” and “transferee”); ensures that getting married and placing a home in a living trust does not exempt either individual from providing a TDS; clarifies that a TDS does not need to be provided for the commercial portion of a mixed-use property; clarifies when the period during which an agreement can be rescinded based on the TDS commences; replaces archaic terms such as “selling agent” with more current and understandable terms, such as “buyer’s agent;” and removes references, where appropriate, which refer to archaic practices such as sub-agency.
- Opposition: None received.
- Amendments: As described above, a very extensive set of amendments were negotiated by Committee staff with the author and sponsor of this bill after this Committee’s deadline to receive amendments for its June 27th hearing. A mockup of these amendments will be provided to Committee members with this analysis.
- Prior and Related Legislation:
- AB 749 (Irwin), 2017-18 Legislative Session was substantially similar to AB 2884. Held on the Assembly Appropriations Committee Suspense File.
- AB 2884 (Irwin), 2017-18 Legislative Session, is a companion measure to this bill that amends provisions of the Business and Professions Code. Passed by this Committee on June 20th and scheduled to be heard in the Senate Business and Professions Committee on June 25, 2018.
- AB 685 (Irwin), Chapter 177, Statutes of 2016, originally contained highly substantive amendments to the Business and Professions Code and Civil Code but was subsequently amended into a technical measure that changed gender references within the Real Estate Law (from salesman to salesperson and from his to his or her).
- AB 749 (Irwin), 2017-18 Legislative Session was substantially similar to AB 2884. Held on the Assembly Appropriations Committee Suspense File.
LIST OF REGISTERED SUPPORT/OPPOSITION
Support
California Association of Realtors (sponsor)
Opposition
None received
-- END --
Senator Hannah-Beth Jackson, Chair
2017-2018 Regular Session
Bill No: AB 1289 (Author:Arambula)
Version: May 15, 2018
Hearing Date: June 12, 2018
Fiscal: Yes
Urgency: No
Consultant: TSG
SUBJECT
Real property disclosure requirements
DESCRIPTION
This bill, which is paired with AB 2884 through contingent enactment provisions, would update terminology, consolidate definitions, and tighten a handful of vague provisions in the laws relating to real estate brokers and real property transactions. Specifically, this bill would: (1) revise a number of definitions related to real estate law; (2) clarify when trustees selling real property in a revocable trust must provide disclosures regarding conditions at the property; (3) clarify that a Transfer Disclosure Statement (TDS) and a Natural Hazard Disclosure (NHD) need not be provided for the commercial portion of a mixed-use property; (4) specify more clearly when the period for rescission of a real estate transaction commences; (5) hold third party experts legally accountable for information they include in a report or opinion in conjunction with a TDS or NHD that has been requested by a prospective buyer, except as disclosed in writing; (6) expand the definition of “confidential information” that a dual agent may not disclose between the buyer and seller, absent consent. The bill would also make explicit that its terms must not be construed to alter any agency relationships or fiduciary duties associated with real estate agents and real property transactions.
BACKGROUND
Real estate transactions can be quite complex. For residential home buyers and sellers, this complexity may be compounded by lack of experience and the stress associated with making what is frequently among the most significant financial transactions of a person’s life. Real estate brokers, who have both training and experience in the field, can help guide home buyers and sellers through the deal, yet brokers themselves operate under a complex set of relationships and incentives.
Not surprisingly, therefore, both real estate transactions and the role of real estate brokers have long been regulated by the State. California enacted its Real Estate Law almost exactly a century ago. (Gates, Ch. 605, Stats. 1919; Bus. & Prof. Code Sec. 10000 et seq.) According to the sponsors of this bill, the last major update to these laws took place forty years ago and the field has evolved significantly in the interim. Some of the terminology contained in existing law is outmoded. In addition, the use of terms across the existing law is not always consistent, breeding some unnecessary confusion among practitioners and consumers alike. The problem is exacerbated to some degree by the fact that, while the primary law governing real estate transactions sits in the Business and Professions Code, there are important related laws housed in the Civil Code.
As introduced, this bill was intended as a more comprehensive update to the laws governing real estate brokers and transactions. Due to early concerns regarding the potential effects on agency relationships and fiduciary obligations, however, the bill has been narrowed significantly. (See Comment 2, below, on the evolution of this bill.)
In its present form, the bill would make a series of minor and relatively non-controversial changes to Civil Code sections pertaining to real estate transactions. (The bill’s companion, AB 2884 (Irwin, 2018), makes similar changes to the Business and Professions Code sections dealing with real estate.) The details of the proposed Civil Code changes are discussed individually in the Comments, below. In general, the changes can be characterized as updating terminology, clarifying duties, and tightening up certain provisions so as to prevent them from being interpreted in ways that run counter to their purpose.
CHANGES TO EXISTING LAW
Existing law, in the form of the Real Estate Law, provides for the licensure and regulation of real estate brokers and sales persons by the Bureau of Real Estate. (Bus. & Prof. Code Sec. 10000 et seq.)
Existing law defines key terms such as “agent,” “sale,” “buyer,” “selling agent,” and “listing agent,” among others, in multiple sections of the Civil Code pertaining to the sale of real property. (Civ. Code Secs. 1086, 1102.14, 1103.14, and 2079.13.)
Existing law regulates agency listings for the transfer of real property and motorhomes, and prohibits a listing from being placed in a multiple listing service (MLS), as defined, unless authorized or directed by the owner in the listing. (Civ. Code Sec. 1087.)
Existing law provides that an agent or appraiser who places a MLS listing shall be responsible for the truth of all representations made by the agent or appraiser of which he or she knew or reasonably should have known to anyone injured by their falseness or inaccuracy. (Civ. Code Sec. 1088.)
Existing law requires a transferor (seller) of residential property, as specified, to provide the transferee (buyer) with certain disclosures about the property by use of a statutorily prescribed Real Estate Transfer Disclosure Statement (TDS). (Civ. Code Secs. 1102 to 1102.6.)
Existing law requires a seller of residential property to provide a statutorily prescribed Natural Hazard Disclosure Statement (NHD) to inform the buyer whether the property lies in a special flood area, an area of potential flooding, a high fire hazard severity zone, a wildland fire area, an earthquake fault zone, or a seismic hazard zone, as specified. (Civ. Code Secs. 1103.1 and 1103.2.)
Existing law provides that a transfer by a fiduciary in the course of the administration of a decedent’s estate, guardianship, conservatorship, or trust is exempt from certain specified TDS and NHD disclosure requirements, except that this exemption shall not apply to a transfer if the trustee is a natural person who is sole trustee of a revocable trust and that trustee is a former owner of the property or an occupant in possession of the property within the preceding year. (Civ. Code Secs. 1102.2(d) and 1103.1(a)(3).)
Existing law provides that if the TDS is delivered after the execution of an offer to purchase, the transferee shall have three days after delivery in person or five days after delivery by deposit in the mail, to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferor’s agent. (Civ. Code Sec. 1102.3(c).)
Existing law authorizes a third party expert, when responding to a request from a prospective buyer for a report or opinion prepared by that third-party expert dealing with matters within the scope of that expert’s license or expertise, to indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of a TDS or NHD. In such a case, the third party expert must indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where such a statement is furnished, the third party expert is not responsible for any items of information, or parts thereof, other than those expressly set forth in the statement. (Civ. Code Secs. 1102.4 and 1103.4(c).)
Existing law requires listing agents and selling agents to provide the seller and buyer in a real property transaction, except as specified, with a copy of a prescribed “Disclosure Regarding Real Estate Agency Relationship” form that summarizes the duties of the real estate agent, including, most notably, those relating to dual agency, and provides information about the type of representation or agency relationship between the agent and the seller or buyer. (Civ. Code Secs. 2079.14 and 2079.16.)
Existing law requires real estate agents, as soon as practicable, to disclose whether they are acting in the real property transaction exclusively as the buyer’s agent, exclusively as the seller’s agent, or as a dual agent representing both the buyer and the seller. (Civ. Code Sec. 2079.17.)
Existing law prohibits a dual agent from disclosing to the buyer that the seller is willing to sell the property at a price less than the listing price or, conversely, disclosing to the seller that the buyer is willing to pay a price greater than the offering price, without express written consent. (Civ. Code Sec. 2079.21.)
Existing law provides that nothing in specified sections of the Civil Code shall be construed to either diminish the duty of disclosure owed buyers and sellers by agents and their associate licensees, subagents, and employees, or to relieve agents and their associate licensees, subagents, and employees from liability for their conduct in connection with these statutory requirements, or for any breach of a fiduciary duty or a duty of disclosure. (Civ. Code Sec. 2079.24.)
This bill would revise several definitions applicable to Civil Code sections 2079.7 and 2079.14 to 2079.24, inclusive, including “selling agent” and “buyer’s agent,” and standardizes the use of certain terms through the Real Estate Law within the Civil Code. For example, the term “sale” is changed to “transfer”; “transferor” is changed to “seller”; “transferee” is changed to “buyer”; and “selling agent” is changed to “buyer’s agent.”
This bill would delete various provisions scattered in the Civil Code that define key terms, and instead provides that the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply. (Consolidation of these definitions in the Business and Professions Code is actually carried out by AB 2884 (Irwin, 2018), not this bill.)
This bill would clarify that a person who is a trustee of a property placed in a revocable trust, whether single or married, is not exempt from existing law requiring a Transfer Disclosure Statement (TDS) and a Natural Hazard Disclosure (NHD) to be provided when the property is sold in the course of administering the trust.
This bill would clarify that a TDS does not need to be provided in the sale of any property not constituting residential property with one to four dwelling units (i.e. for the commercial portion of a mixed-use property).
This bill would clarify when the period during which an agreement can be rescinded commences. More specifically, a disclosure described in Section 1102.6 is deemed complete (and the rescission period commences) when Sections I, II, and III of the form are completed and delivered, whether or not Section IV has been completed by the buyer’s agent.
This bill would delete provisions relieving third party experts from being responsible for information they include in a report or opinion prepared in conjunction with a TDS or NHD statement pursuant to a request by a prospective buyer, except as stated through a specified written statement.
This bill would revise and recast existing law prohibiting a dual agent, without obtaining express permission, from disclosing to the seller any confidential information, as defined, that is obtained from the buyer, and conversely, from disclosing to the buyer any confidential information obtained from the seller.
This bill would redefine “confidential information” to mean facts relating to the client’s financial position, motivations, bargaining position, or other personal information that may impact price, such as that the seller is willing to accept a price less than the listing price or that the buyer is willing to pay a price greater than the price offered.
This bill would provide that nothing in its terms shall be construed to affect any agency relationships in a real estate transaction or a fiduciary’s responsibilities and obligations to disclose information relative to a real estate transaction pursuant to specified Articles of the Civil Code amended by this bill.
This bill would establish contingent enactment with AB 749 of the 2017–18 Regular Session; specifically, that this bill shall not become operative unless AB 749 is also enacted and becomes effective on January 1, 2019.
COMMENT
1. Stated need for the bill
According to the author:
AB 1289 makes non-controversial changes and modernizes the Real Estate Law and will provide greater clarity to consumers and practitioners regarding terminology, definitions and existing practice.
This bill resolves matters of importance to consumers and practitioners in this area. It consolidates terms so that usage is more understandable such as replacing transferor with seller. It removes archaic terms, replacing the confusing term “selling agent” by buyer’s agent for “an agent of a buyer”. Finally, it makes non-controversial amendments to clarify issues with existing disclosure law.
As sponsor of the bill, the California Association of Realtors writes:
This bill updates the real estate law, which has not been revised in decades, to reflect changes in both practice and law. This has been done without reducing consumer protections.
2. Confirmation that the bill would not impact longstanding doctrines regarding agency relationships and fiduciary duties in the context of real estate
As introduced, this bill would have made additional modifications to the terminology used to refer to the role of real estate agents. In particular, the original bill replaced all statutory references to “agents” with the term “licensee.” The California Association of Realtors (CAR), who are the sponsors of this bill, asserted that this change was needed because the term “agent” was imprecise: all agents are licensees but not all licensees are agents. CAR stated that no substantive change was intended by the change in terminology.
The approach drew opposition from consumer advocates, however, based on concerns that removing the term “agent,” in this way might have the effect of undermining longstanding agency and fiduciary duty doctrines that hold real estate brokers accountable for the actions of all those operating under their license. The Assembly Committee on Judiciary analysis of this bill sets forth these concerns in detail. (See Assem. Com. on Judiciary, Rep. on Assem. Bill No. 1289 (2017-2018 Reg. Sess.) pp. 6-7.) Given that altering these longstanding doctrines was not CAR’s stated purpose for sponsoring the bill, it ultimately agreed to put the word “agent” back into the bill, tied to a definition that affirms that real estate brokers remain accountable for those operating under them. This definition can be found in Section 1 of the bill among the proposed amendments to Civil Code Section 1086. As belt and suspenders to that definition, the bill now also contains a provision, located in Section 44, stating that “[n]othing in this act… shall be construed to affect any agency relationships in a real estate transaction or a fiduciary’s responsibilities and obligations to disclose information relative to a real estate transaction” pursuant to the applicable law.
Together, these amendments make it crystal clear that this bill would not in any way alter the laws governing the agency relationships, fiduciary duties, and associated liability between all participants in a real estate transaction. On that basis, the Consumer Attorneys of California has removed its opposition.
3. Contingent enactment provision
This bill contains a contingent enactment clause, meaning that its terms will not become operative unless another bill is also enacted. Originally, this bill was tied to AB 739 (Irwin, 2017), but that bill died in the Assembly Committee on Appropriations in January of this year. The content of AB 739 was subsequently reincarnated in the form of AB 2884 (Irwin, 2018.) This bill has not yet been updated accordingly. It will need to be amended to replace references to AB 739 with references to AB 2884.
Like this bill, AB 2884 makes revisions and modifications to the laws governing real estate agents and real property transactions. Whereas this bill would alter real estate related components of the Civil Code, however, AB 2884 would make changes to real estate related provisions in the Business and Professions Code. Of particular relevance to this bill, AB 2884 would operate to gather most of the real estate related definitions scattered through the two codes, place them at the beginning of the Real Estate Law in the Business and Professions Code, and make them consistent. This has the laudable effect of making the laws related to real estate transaction somewhat easier to read and to follow. However, the Legislature and legislative staff will need to be especially attentive to the interplay between the two codes in the future since, if this bill and AB 2884 are enacted, any proposed change to the definitions within the Business and Professions Code would have potential effects across a number of provisions within the Civil Code as well.
4. Updating terminology
Existing law related to real estate transactions contains some antiquated and, at times, counterintuitive language. For example, the term “selling agent” actually refers to the agent acting on behalf of the buyer. This bill would change all references to “selling agent” to the more logical phrase “buyer’s agent.” The bill makes a number of other similar updates that render the statutes more modern and accessible, as well: replacing “transfer” with “sale;” “transferor” with “seller” and “transferee” with “buyer,” for instance.
Review of the bill and of AB 2884 by various policy committee consultants has revealed that some of the definitional changes and restructuring proposed by the bills could lead to confusion. There are instances in which definitions do not match or that the old terminology still appears in the bill in spite of the intended change. The author and sponsor are aware of the issues and have agreed to work with the respective committees where the bills will be heard next, Senate Banking and Senate Business and Professions, to track down and eliminate any remaining inconsistencies.
5. Fixing trustee’s duties with regard to property disclosures
Existing law generally requires people selling residential real estate to make certain disclosures regarding the condition of the property. In particular, through a Transfer Disclosure Statement (TDS), the seller is supposed to inform prospective buyers about any problems, defects, or other issues that affect the overall condition of the property. (Civ. Code Sec. 1102 et seq.) Similarly, through a Natural Hazard Disclosure (NHD), the seller is supposed to inform prospective buyers about things like whether the property is located in an area subject to high risk of floods, wildfires, or earthquakes. (Civ. Code Sec. 1103 et seq.)
Some sellers are exempt from these disclosure requirements. Some of these exemptions exist because the buyer already has as much knowledge of the property as the seller. This applies to sales between co-owners or sales between former spouses upon divorce, for instance. Other sellers are exempt from the disclosure requirements because their relationship to the property is so removed that they do not have much personal knowledge of the conditions there. These exemptions apply to court ordered sales, foreclosure sales, and many sales made by trustees.
When the trustee is a natural person, the property is in a revocable trust, and the trustee occupies or has occupied the property, however, the policy purpose behind the exemption does not apply; such a trustee knows the property well. Existing law therefore requires such a trustee to provide a Transfer Disclosure Statement. In a weird quirk of the law, however, the existing law only places this obligation on a “sole trustee,” rendering it inapplicable to situations in which two or more people are serving in the role of trustee. Such an arrangement is common when, for example, parents hold property in a revocable trust for the benefit of their children.
This bill would eliminate the modifier “sole” before “trustee” in this provision of the law, thus appropriately requiring a Transfer Disclosure Statement whenever one or more trustees have occupied the property that is being sold, since such trustees know the property well, whether they are single, a couple, or a group.
In addition and for the same policy reasons, the bill would require trustees who have occupied the property being sold to provide a Natural Hazard Disclosure. Existing law does not.
6. Clarifying when a Transfer Disclosure Statement must be provided
Existing law requires the seller of property consisting of four or fewer dwelling units to provide a Transfer Disclosure Statement to prospective buyers. (Civ. Code Sec. 1102(a).) Such disclosures are not required for transactions involving commercial properties, where the parties are likely to have representation, where the parties are generally more sophisticated, and where what is at risk is a business enterprise rather than someone’s homestead. (Smith v. Rickard (1988) 205 Cal.App.3d 1354, 1361.) Left unaddressed in the existing statute is what happens in the case of mixed-use properties – some commercial and some residential – with four or fewer dwelling units.
The matter came before the California courts of appeal in Richman v. Hartley (2014) Cal.App.4th 1182. The prospective buyer of a mixed-use property with fewer than four dwelling units backed out of a sale under contract. The seller sued for breach and the prospective buyer defended on the grounds of failure to provide a Transfer Disclosure Notice. The court ruled that the presence of commercial property did not eliminate the duty to provide disclosure as to the residential units.
Through definitional changes (partially accomplished in AB 2884) this bill would codify the Richman decision and require the delivery of a Transfer Disclosure Notice for mixed used properties with four or fewer residential units.
7. Specifying when the period for rescission commences
In residential real estate sales, the delivery of the completed Transfer Disclosure Notice triggers the start of a short period during which the prospective buyer, upon reviewing the conditions reported, may back out of the sale. (Civ. Code Sec. 1102.3(c).) Existing law does not specify precisely what constitutes a completed Transfer Disclosure Notice, however, so some dispute has arisen about when the rescission period starts. In particular, the sponsor asserts that some agents delay filling out certain sections of the form in order prolong the rescission period.
In order to prevent such tactics, this bill would specify that the Transfer Disclosure Notice is complete when certain sections of it have been filled out. Once those sections have been filled out and delivered, the rescission period commences.
8. Clarifying the liability of third party experts for information in their reports
In residential real estate sales, the real estate agents are legally responsible for conducting a competent and diligent visual inspection of the property and disclosing all issues and defects they discover. (Civ. Code Sec. 2079(a).) When hired to inspect property for purposes of a real estate transaction, third party inspectors also operate under a duty to discover and disclose defects at the property. In the case of licensed experts – land surveyors, engineers, and structural pest control operators, for example. – that duty springs from their licensure. Home inspectors are not licensed by the state, but nonetheless have a duty to discover and disclose defects at the property. (Bus. and Prof. Code Sec. 7196.)
The duties of realtors and third party inspectors to discover and disclose property defects are not co-extensive. Realtors need only discover and disclose what can be gleaned from a visual inspection, while third party inspectors may need to conduct other forms of examination and analysis, depending on what it is that they are inspecting. Nonetheless, where the realtor and the inspector’s duties do overlap, both parties fail to live up to those duties, and that failure is the proximate cause of an indivisible injury to the purchaser of the property, then the realtor and third party inspector will be jointly and severally liable to the purchaser for that injury.” (Leko v. Cornerstone Bldg. Inspection Services (2001) 86 Cal.App.4th 1109, 1116-1118.) For that same reason, inspectors and realtors may seek equitable indemnity from one another when both are at fault for a failure to disclose. (Ibid.)
A realtor may not rely on a home inspection report to avoid its own duty to conduct a reasonable inspection. (Leko, supra, 86 Cal.App.4th 1109 at 1118.) Realtors can, however, use information provided to them by public agencies and licensed third party experts when complying with the statutory disclosure requirements. This practice is sometimes known as “substituted disclosure.” Real estate agents are not liable for any errors, inaccuracies, or omissions contained in substituted disclosures, so long as the realtors exercise ordinary care in obtaining and transmitting the information and so long as the realtors do not have personal knowledge that the information is wrong or incomplete. (Civ. Code Sec. 1102.4(a) and 1103.4(a).)
Current law also limits the liability of the third party experts whose reports or opinions will be used as part of the substituted disclosure. When a prospective buyer requests the expert’s report or opinion, the expert may indicate which of the statutory disclosure requirements the report is intended to address. (Civ. Code Secs. 1102.4(c) and 1103.4(c).) For example, the expert might state that the inspection only relates to the presence or absence of structural pests, or is confined to the swimming pool. Under existing law, such a statement by the expert appears to relieve the expert legal responsibility for everything else in the disclosure. (Ibid.) In other words, if the expert provides a report about the swimming pool and states that the report is only intended to serve as a substituted disclosure regarding the condition of the swimming pool, then the expert is not legally responsible for discovering and disclosing problems with other problems that may exist at the property.
This bill would eliminate the limitation on the expert’s responsibility, both in the context of Transfer Disclosure Statements and for Natural Hazard Disclosures. It is not totally clear what the impact of such a change would be. If the change is merely intended to ensure that experts can be held responsible for all of the content in their report or opinion, even if they write in a disclaimer saying that they only mean to address certain required disclosures, that would seem to provide appropriate protections for residential real estate purchasers. If, instead, the change means to make experts responsible for all of the statutorily required disclosures, even where their report is limited to just one or two items (the pool or the HVAC, say), then such a change seems to strain logic. Why should an expert on swimming pools be held responsible for making disclosures about the structural integrity of the roof? Why would a swimming pool expert ever provide a report on the condition of a swimming pool if doing so would render the expert responsible for all of the statutorily required disclosures?
In general, subdivision (c) of both Civil Code Section 1102.4 and 1103.4 are unclear and the changes this bill proposes would not help the situation. Since one of the major stated purposes of the bill is to make real estate laws more accessible, the author may wish to take this opportunity to clarify and simplify the language of these two sections. Alternatively, it may make most sense simply to leave the existing law as is, so as to avoid any unintended consequences.
9. Expanding the definition of “confidential information” in dual agency situations
Real estate agents may represent the seller of a property, the prospective buyer, or both. When a real estate agent is acting on behalf of both the buyer and the seller, the nature of the relationship can complicate negotiations about the price. If the real estate agent knows that the seller will accept an offer lower than the listing price, or that the buyer is prepared to offer more than the listing price, disclosing that information could influence what price the parties settle upon. Existing law therefore prohibits real estate agents acting in dual capacity as both the buyer and seller’s agent from making such a disclosure, unless the dual agent has been expressly authorized to do so. (Civ. Code Sec. 2079.21.)
Since the existing law only makes reference to price, however, there is some question about whether a dual agent may disclose other information that, while not the price itself exactly, are still factors that might influence a seller to accept a lower offer or a buyer to pay more. In other words, the existing statute arguably can be interpreted as allowing dual agents to communicate information that might provide hints about price flexibility even when they are prohibited from disclosing such price flexibility directly.
This bill would specify that a dual agent cannot disclose “facts relating to the client’s financial position, motivations, bargaining position, or other personal information that may impact price” without express permission. In this way, the bill seeks to prevent dual agents from skirting around the prohibition on disclosing a client’s willingness to budge on the price.
10. Bringing real estate related pronouns into the modern age
The bill and the codes it would amend use gendered pronouns – “he or she” – in many places. While “he or she” is gender neutral in comparison to the use of just one gender, California now formally recognizes that gender is non-binary. (SB 179, Atkins, Ch. 853, Stats. 2017.) Arguably, our statutes ought to reflect that fact as well. Since one major objective of this bill is to eliminate antiquated terminology from the provisions of the law relating to real estate, the author may also wish to take this opportunity to remove the gendered pronouns.
11. Amendments
The author proposed to offer the following amendments in Committee. In summary form, those amendments:
- update cross references in the bill to AB 739, the content of which has been moved to AB 2884;
- replace all gendered pronouns with gender neutral terms; and
- codify intent language indicating that the bill does not alter agency relationships or fiduciary duties within the real estate industry
- update cross references in the bill to AB 739, the content of which has been moved to AB 2884;
The specific amendments are:
Amendment 1
On page 5, strike out lines 4 through 10, inclusive, and insert:
(b) An “agent” is one authorized by law to act in that capacity for that type of property, and is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code or is a licensee, as defined in Section 18006 of the Health and Safety Code.
Amendment 2
On page 8, in line 33, after “applicable.” insert:
Where such a statement is furnished, the expert shall not be responsible for any items of information, or parts thereof, other than those expressly set forth in the statement.
Amendment 3
On page 19, in line 8, strike out “he or she” and insert:
the seller
Amendment 4
On page 19, in line 22, strike out “he or she” and insert:
the seller
Amendment 5
On page 20, in line 10, strike out “he or she” and insert:
the seller
Amendment 6
On page 20, in line 24, strike out “he or she” and insert:
the seller
Amendment 7
On page 21, in line 36, strike out “he or she” and insert:
that person
Amendment 8
On page 22, in line 23, strike out “his or her”in both places it appears in the Statement and, in both places, insert:
seller’s
Amendment 9
On page 25, in line 23, strike out “he or she” and insert:
the seller’s agent
Amendment 10
On page 28, in line 5, after “applicable” insert:
Where such a statement is furnished, the expert shall not be responsible for any items of information, or parts thereof, other than those expressly set forth in the statement.
Amendment 11
On page 32, in line 14, strike out “his or her” and insert:
the seller’s
Amendment 12
On page 33, in line 2, strike out “his or her” and insert:
the seller’s
Amendment 13
On page 33, in line 19, strike out “his or her” and insert:
the buyer’s
Amendment 14
On page 38, in line 14, strike out “he or she” and insert:
the offender
Amendment 15
On page 39, in line 10, strike out “his or her” and insert:
that agent’s
Amendment 16
On page 40, in line 24, strike out “he or she” and insert:
the person
Amendment 17
On page 48, strike out lines 8 through 18 inclusive
Amendment 18
On page 48, in line 20, strike out “749” and insert:
2884
In addition:
- add sections 1090.1, 1102.18, 1103.15, 2079.25 to the Civil Code, each containing the following text:
Nothing in Assembly Bill 1289 of the 2017-2018 Regular Session nor in Assembly Bill 2884 of the 2017–18 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciary’s responsibilities and obligations to disclose information relative to a real estate transaction pursuant to Article 6 (commencing with Section 1086) of Chapter 1 of Title 4 of Part 4 of Division 2 of, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of, or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3 of, the Civil Code.
- renumber the bill section numbers to conform to these changes
Support: None known
Opposition: None known
HISTORY
Source: California Association of Realtors
Related Pending Legislation: AB 2884 (Irwin, 2018) would, among other things, revise and recast many key real estate-related definitions applicable to Civil Code provisions amended by this bill, and consolidates them in the Business & Professions Code. AB 2884 also makes numerous substantive changes to the Real Estate Law in the BPC, including provisions related to the authority of the Real Estate Commissioner and licensing requirements for real estate brokers. AB 2884 is currently pending consideration before the Senate Business, Professions, and Economic Development Committee
Prior Legislation:
AB 749 (Irwin, 2017), among other things, would have revised and recast many key real estate-related definitions applicable to Civil Code provisions amended by this bill. It would have consolidated those definitions in the Business & Professions Code. AB 749 would also have made numerous substantive changes to the Real Estate Law in the Business & Professions Code, including provisions related to the authority of the Real Estate Commissioner and licensing requirements for real estate brokers. AB 749 died in the Assembly Committee on Appropriations, but nearly identical content was gutted and amended into AB 2884 (Irwin, 2018).
AB 1059 (Gonzalez-Fletcher, 2017) would have required an additional disclosure about dual agency to be provided to principals in commercial real estate transactions, as specified. AB 1059 died in the Assembly Committee on Judiciary.
AB 1626 (Irwin, 2017) would have described when dual agency exists and would have specified, with respect to certain provisions of existing law, some of the duties of licensees in conducting dual agency transactions. The bill would also have revised the mandatory disclosure form used in dual agency transactions, as specified. AB 1626 died in the Assembly Committee on Judiciary.
AB 685 (Irwin, Ch. 177, Stats. 2016) as introduced, was largely identical to early versions of what are now AB 2884 (Irwin, 2018) and AB 1289 (Arambula, 2017). AB 685 was later amended to focus narrowly on making the Real Estate Law gender neutral, though it still relies on a presumption that gender is binary in many instances.
Prior Vote:
Assembly Floor (Ayes 75, Noes 0)
Assembly Appropriations Committee (Ayes 17, Noes 0)
Assembly Judiciary Committee (Ayes 10, Noes 0)
**************
Date of Hearing: January 18, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
ABPCA Bill Id:AB 1289
Author:(Arambula) – As Amended Ver:January 12, 2018
Policy Committee: | Judiciary | Vote: | 10 - 0 |
Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill revises definitions of several key terms appearing throughout portions of the Civil Code governing the transfer of real property and associated disclosure requirements, and makes various other technical and clarifying changes.
FISCAL EFFECT:
Minor and absorbable costs to the Bureau of Real Estate within the Department of Consumer Affairs to update manuals and other written materials.
COMMENTS:
- Background. Existing law establishes the Real Estate Law to provide for the licensure and regulation of real estate brokers and sales persons by the Bureau of Real Estate. This law also defines key terms such as "agent", "sale", "buyer", "selling agent", and "listing agent", among others.
- Purpose. According to the author, "The Real Estate Law has not been updated for almost 40 years. Consumers are often confused about the terminology used in transactions and the codes do not reflect current law and the practice of real estate. AB 1289 makes a number of non-controversial changes to the Civil Code related to real property disclosure requirements…in order to provide greater clarity to consumers and practitioners regarding terminology, definitions and existing practice."
- Related Legislation.
- AB 749 (Irwin). Among other things, AB 749 revises and recasts many key real estate-related definitions applicable to Civil Code provisions amended by this bill, and consolidates them in the Business & Professions Code (BPC). AB 749 also makes numerous substantive changes to the Real Estate Law in the BPC, including provisions related to the authority of the Real Estate Commissioner and licensing requirements for real estate brokers. AB 749 is currently in the Assembly Business & Professions Committee.
- AB 1626 (Irwin). AB 1626 describes when dual agency exists and would specify some of the duties of licensees in conducting dual agency transactions. AB 1626 would
also revises the mandatory disclosure form used in dual agency transactions, as specified. AB 1626 is in the Assembly Judiciary Committee as a two year bill.
Analysis Prepared by: Jessica Peters / APPR. / (916) 319-2081
Date of Hearing: January 9, 2018
ASSEMBLY COMMITTEE ON JUDICIARY
Mark Stone, Chair
ABPCA Bill Id:AB 1289
Author:(Arambula) – As Amended Ver:April 6, 2017
As Proposed to be Amended
SUBJECT: REAL PROPERTY DISCLOSURE REQUIREMENTS
KEY ISSUE: should VARIOUS, non-controversial changes to current law governing the sale of real property and related disclosure requirements be approved while more controversial proposed changes to real property law that could potentially affect agency relationships and fiduciary duties are discussed by stakeholders to ensure that any proposed changes do not unintentionally hurt consumers?
SYNOPSIS
This bill, sponsored by the California Association of Realtors (CAR), seeks to make various changes to existing law governing the duties that real estate agents have to disclose information to buyers and sellers in residential real estate transactions, and in some cases, commercial transactions as well. The current version of the bill, last amended April 6, 2017, proved controversial with consumer advocates who reasonably argued that the bill, whether intentionally or not, could effectively eliminate agency and ultimately fiduciary relationships between licensed brokers and their principals in real estate transactions. For example, the current version of the bill contains repeated instances of substituting the term "licensee" for the term "agent" throughout the Civil Code--including in sections of law that specifically state rules presuming an agency relationship or governing the duties inherent in agency relationship. In lieu of agency relationships among brokers and their employees and the associated legal theories of respondeat superior and imputed liability that arise from such relationships, opponents contended that the bill would instead favor transactional licensee-client relationships, governed at the option of the parties to a written contract. Furthermore, as now in print, the bill also raises new questions about whether such changes would affect the Bureau of Real Estate's regulation of licensed brokers and their employees, or a plaintiff's ability to sue for breach of fiduciary duty under traditional legal theories of liability and legal responsibility.
According to the author and sponsor, it is not and has never been the intent of this bill to affect agency relationships or fiduciary duties under existing law. In April 2017, the author agreed to hold the bill in this Committee until the second year of the Session in order to facilitate more careful consideration of these issues by a stakeholder group to meet over the fall recess. Since that time, both the author and sponsor have worked diligently with Committee staff and a large group of stakeholders and experts to develop a set of amendments that reflect the author's intent not to upset agency relationships and fiduciary duties under existing law.
Proposed amendments to the bill, which are reflected in this analysis, narrow the scope of changes contained in the version currently in print, and reflect an agreement between the author and the Committee to excise more controversial provisions of the bill here, in order to facilitate a vehicle for the remaining, less controversial provisions to be heard by the Committee before an upcoming legislative deadline for bills introduced in 2017. As a result of these proposed amendments, the Consumer Attorneys of California (CAOC) has removed their opposition to the bill and pledged to continue working with the author, sponsor, and other stakeholders on areas of concern, and to potentially develop language that can be amended back into the bill if agreement on those issues can be reached. There is no other known opposition to the bill as it is proposed to be amended.
In addition to making various definitional and terminology changes, the bill as proposed to be amended includes a number of substantive changes to law governing disclosure requirements. Among other things, this bill as proposed to be amended clarifies the following: (1) TDS and NHD disclosure requirements still apply to a trustee of a property placed in a revocable (living) trust, whether single or married; (2) a TDS does not need to be provided for the non-residential portion of a mixed-use property; (3) commencement of the period during which an agreement can be rescinded by a prospective buyer upon receiving delivery of the TDS. In addition, the bill also revises and recasts existing law prohibiting dual agents from disclosing confidential information, as defined, to the opposite principal from whom it was obtained. This bill will be referred to the Assembly Appropriations Committee should it be approved by this Committee, and it is expected that some additional amendments to address remaining concerns will be ready in time to be adopted by that Committee.
SUMMARY: Revises definitions of several key terms appearing throughout portions of the Civil Code governing the transfer of real property and associated disclosure requirements, and makes various other technical and clarifying changes. Specifically, this bill:
- Revises several definitions applicable to Civil Code sections 2079.7 and 2079.14 to 2079.24, inclusive, including “selling agent” and “buyer’s agent,” and standardizes the use of certain terms through the Real Estate Law within the Civil Code. For example, the term “sale” is changed to “transfer”; “transferor” is changed to “seller”; “transferee” is changed to “buyer”; and “selling agent” is changed to “buyer’s agent.”
- Deletes various provisions scattered in the Civil Code that define key terms, and instead provides that the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code (BPC) shall apply. (Consolidation of these definitions in the BPC is actually carried out by AB 749 (2017), not this bill.)
- Clarifies that a person who is a trustee of a property placed in a revocable trust, whether single or married, is not exempt from existing law requiring a Transfer Disclosure Statement (TDS) and a Natural Hazard Disclosure (NHD) to be provided when the property is sold in the course of administering the trust.
- Clarifies that a TDS does not need to be provided in the sale of any property not constituting residential property with one to four dwelling units (i.e. for the commercial portion of a mixed-use property).
- Clarifies when the period during which an agreement can be rescinded commences. More specifically, a disclosure described in Section 1102.6 is deemed complete (and the rescission period commences) when Sections I, II, and III of the form are completed and delivered, whether or not Section IV has been completed by the buyer’s agent.
- Deletes provisions relieving third party experts from being responsible for information they include in a report or opinion prepared in conjunction with a TDS or NHD statement pursuant to a request by a prospective buyer, except as stated through a specified written statement.
- Revises and recasts existing law prohibiting a dual agent, without obtaining express permission, from disclosing to the seller any confidential information, as defined, that is obtained from the buyer, and conversely, from disclosing to the buyer any confidential information obtained from the seller. Defines "confidential information” to mean facts relating to the client’s financial position, motivations, bargaining position, or other personal information that may impact price, such as that the seller is willing to accept a price less than the listing price or that the buyer is willing to pay a price greater than the price offered.
- Provides that nothing in this bill act shall be construed to affect any agency relationships in a real estate transaction or a fiduciary’s responsibilities and obligations to disclose information relative to a real estate transaction pursuant to specified Articles of the Civil Code amended by this bill.
- Establishes contingent enactment with AB 749 of the 2017–18 Regular Session; specifically, that this bill shall not become operative unless AB 749 is also enacted and becomes effective on January 1, 2019.
- Makes other technical and clarifying amendments.
EXISTING LAW:
- Establishes the Real Estate Law to provide for the licensure and regulation of real estate brokers and sales persons by the Bureau of Real Estate. (Part 1 of Division 4 of the Business & Professions Code, commencing with Section 10000.)
- Defines key terms such as "agent", "sale", "buyer", "selling agent", and "listing agent", among others, in multiple sections of the Civil Code pertaining to the sale of real property. (Civil Code Section 1086, 1102.14, 1103.14, and 2079.13. All further references are to this Code unless otherwise stated.)
- Regulates agency listings for the transfer of real property and motorhomes, and prohibits a listing from being placed in a multiple listing service (MLS), as defined, unless authorized or directed by the owner in the listing. Further provides that an agent or appraiser who places a MLS listing shall be responsible for the truth of all representations made by the agent or appraiser of which he or she knew or reasonably should have known to anyone injured by their falseness or inaccuracy. (Sections 1087 and 1088.)
- Requires a transferor (seller) of residential property, as specified, to provide the transferee (buyer) with certain disclosures about the property by use of a statutorily prescribed Real Estate Transfer Disclosure Statement (TDS). (Sections 1102 to 1102.6.)
- Requires a seller of residential property to provide a statutorily prescribed Natural Hazard Disclosure Statement (NHD) to inform the buyer whether the property lies in a special flood area, an area of potential flooding, a high fire hazard severity zone, a wildland fire area, an earthquake fault zone, or a seismic hazard zone, as specified. (Section 1103.1 and 1103.2.)
- Provides that a transfer by a fiduciary in the course of the administration of a decedent’s estate, guardianship, conservatorship, or trust is exempt from the TDS and NHD disclosure requirements in # 4) and 5), except that this exemption shall not apply to a transfer if the trustee is a natural person who is sole trustee of a revocable trust and he or she is a former owner of the property or an occupant in possession of the property within the preceding year. (Sections 1102.2(d) and 1103.1(a)(3).)
- Provides that if the TDS is delivered after the execution of an offer to purchase, the transferee shall have three days after delivery in person or five days after delivery by deposit in the mail, to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferor’s agent. (Section 1102.3(c).)
- In responding to a request from a prospective buyer for a report or opinion prepared by a third-party expert, dealing with matters within the scope of his or her license or expertise, the expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of a TDS or NHD, and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Further provides that where such a statement is furnished, the expert shall not be responsible for any items of information, or parts thereof, other than those expressly set forth in the statement. (Sections 1102.4 and 1103.4(c).)
- Requires listing agents and selling agents to provide the seller and buyer in a real property transaction, except as specified, with a copy of a prescribed "Disclosure Regarding Real Estate Agency Relationship" form that summarizes the duties of the real estate agent, including, most notably, those relating to dual agency, and provides information about the type of representation or agency relationship between the agent and the seller or buyer. (Sections 2079.14 and 2079.16.)
- Requires the selling agent, as soon as practicable, to disclose to the buyer and seller whether the selling agent is acting in the real property transaction exclusively as the buyer’s agent, exclusively as the seller’s agent, or as a dual agent representing both the buyer and the seller. Conversely, requires the listing agent, as soon as practicable, to disclose to the seller whether the listing agent is acting in the real property transaction exclusively as the seller’s agent, or as a dual agent representing both the buyer and seller. (Section 2079.17.)
- Prohibits a dual agent from disclosing to the buyer that the seller is willing to sell the property at a price less than the listing price, without the express written consent of the seller. Also prohibits a dual agent from disclosing to the seller that the buyer is willing to pay a price greater than the offering price, without the express written consent of the buyer. (Section 2079.21.)
- Provides that nothing in # 9) to 11) or related sections of the Civil Code, as specified, shall be construed to either diminish the duty of disclosure owed buyers and sellers by agents and their associate licensees, subagents, and employees, or to relieve agents and their associate licensees, subagents, and employees from liability for their conduct in connection with these statutory requirements, or for any breach of a fiduciary duty or a duty of disclosure. (Section 2079.24.)
FISCAL EFFECT: As currently in print this bill is keyed fiscal.
COMMENTS: This bill, sponsored by the California Association of Realtors (CAR), seeks to make various changes to existing law that governs the transfer of real property and the associated duties that real estate agents have to disclose information to buyers and sellers in residential real estate transactions, and in some cases, commercial transactions as well.
Proposed amendments to the bill narrow the scope of changes contained in the version currently in print, and reflect an agreement between the author and the Committee to excise more controversial provisions of the bill here, in order to facilitate a vehicle for the remaining, less controversial provisions to be heard by the Committee before an upcoming legislative deadline for bills introduced in 2017. In addition, this allows the stakeholders to engage in further discussion of the complicated issues raised by the excised provisions (discussed below), and potentially develop language that can be amended back into the bill if consensus solutions are reached.
Stated need for the bill. According to the author, "The Real Estate Law has not been updated for almost 40 years. Consumers are often confused about the terminology used in transactions and the codes do not reflect current law and the practice of real estate. AB 1289 makes a number of non-controversial changes to the Civil Code related to real property disclosure requirements… in order to provide greater clarity to consumers and practitioners regarding terminology, definitions and existing practice."
Consolidation and revision of definitions used in real estate law: a brief summary of this bill and AB 749. Existing law, known as the Real Estate Law (Part 1 of Division 4 of the Business & Professions Code (BPC), commencing with Section 10000) provides for the licensure and regulation of real estate brokers and sales persons by the Real Estate Commissioner, the chief officer of the newly renamed Bureau of Real Estate (BRE). In addition to the Real Estate Law in the BPC, however, there are several articles in the Civil Code that govern the transfer of real property, establish various duties and disclosure requirements, and otherwise regulate the conduct of real estate brokers, agents, and salespersons involved in these transactions for the benefit of the principal buyers and sellers. The articles in the Civil Code amended by this bill include those titled "Agency Listings for the Transfer of Certain Property" (Sections 1086 to 1090); "Disclosures Upon Transfer of Residential Property" (Sections 1102 to 1102.17); "Disclosure of Natural and Environmental Hazards" (Section 1103 to 1103.14); and " Duty to Prospective Purchaser of Real Property" (Section 2079 to 2079.24).
CAR notes that key terms are defined at multiple locations within the Civil Code, and sometimes employ non-identical definitions for the same term. (Compare, e.g., the definition of "selling agent" in Section 1086(h) to that in Section 2079.13(o).) In addition, certain terms are sometimes used interchangeably, varying from section to section, causing potential confusion (e.g. the interchangeable use of the terms "transferor" and "seller"). Finally, CAR contends that certain terms (e.g. "selling agent") should simply be changed and re-defined to be more current and understandable.
This bill is intended to work in conjunction with another CAR-sponsored bill, AB 749 (Irwin), to help standardize the use of key real estate terms, and to consolidate the definitions of all these terms into a single chapter of the Real Estate Law in the BPC—in the process, removing them from the Civil Code and defining them by reference to the BPC. For this reason, both bills contain contingent enactment language which establishes that neither bill becomes operative unless both are signed into law by the Governor by the end of 2018. The unusual relationship between the two bills—where the operative rules for real estate transactions lie in the Civil Code, but the key definitions that inform these rules lie in the BPC—presents a challenge because this Committee technically has no jurisdiction over AB 749, which has a different author and is currently scheduled to be heard only by the Business and Professions Committee. Nevertheless, CAR, the sponsor of both AB 749 and AB 1289, has agreed to work with both Committees to coordinate an overall approach to the proposed definitional changes that is workable and reflects the fact that the bills are contingently enacted.
As currently in print, the bill consolidates all key definitions in the BPC and removes them from where they appear in the Civil Code, most notably in Sections 1086 and 2079.13. To standardize the definitions used throughout the Civil Code, the bill provides that all such terms are to be defined by reference to the new consolidated location of definitions in the BPC. This approach raised some concerns among stakeholders that there could be unintended consequences with having important Civil Code provisions and requirements rely on definitions no longer found anywhere in the Civil Code, but in the BPC instead. At the very least, it raises interesting jurisdictional questions, including the possibility that real estate disclosure requirements in the Civil Code might be impacted by future legislation solely amending the BPC—legislation that might normally not be referred to this Committee upon first appearance. It was also suggested that another unintended consequence of this approach might be to hinder a plaintiff from bringing certain causes of action under the Civil Code if he or she is forced to rely on language within the BPC, particularly if, for example, the defendant can employ an affirmative defense that no private right of action exists to enforce provisions of the BPC.
Concerns about altering or eliminating agency relationships among real estate professionals in the Civil Code. The strongest objections, however, were raised to the bill's repeal of Section 2079.13 (defining many key terms, most notably "agent") without carrying over any definition of the term "agent" in the BPC, combined with subsequent changes in terminology proposed throughout the Civil Code. Specifically, the current version of the bill would repeal the definition of "agent" under Section 2079.13(a) (defined as "a person acting under provisions of Title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker … and under whose license a listing is executed or an offer to purchase is obtained"), and then replace nearly every instance of the word "agent" in specified sections of the Civil Code with the term "licensee." According to CAR, this change in terminology is appropriate because in many cases where the word "agent" appears, agency may or may not have been established. CAR contends that it makes better sense to substitute the term "licensee" instead, because "all agents are licensees, but not all licensees are agents."
Importantly, however, the definition of "agent" contains a reference to Title 9 (commencing with Section 2295), which represents a codification of basic agency relationships under the Field Codes enacted in 1872. (For example, Section 2295 reads in whole: "An agent is one who represents another, called the principal, in dealings with third persons. Such representation is called agency.") Without this fundamental nexus to longstanding agency law under Title 9, inherent in every use of the term "agent" throughout the Civil Code, opponents argued that a consequence of the bill, whether intended or not, would be to effectively eliminate agency and ultimately fiduciary relationships among licensed brokers and their principals in real estate transactions. In lieu of agency relationships among brokers and their employees and the associated legal theories of respondeat superior and imputed liability that arise from such relationships, opponents contended that the bill would instead favor transactional licensee-client relationships, governed at the option of the parties to a written contract. Several stakeholders were particularly concerned about provisions in the bill that could be interpreted to allow a person to act as a real estate licensee engaging in licensed activity for a client, but not be their agent; in other words, seemingly permitting the actor to negotiate the duties of an agent through a transactional licensee relationship. This possibility raises new unanswered questions about whether such changes would affect the Bureau of Real Estate's regulation of licensed brokers and their employees, or a plaintiff's ability to sue for breach of fiduciary duty under traditional legal theories of liability and legal responsibility.
According to the author and sponsor, however, it is not the intent of this bill to affect agency relationships or fiduciary duties under existing law, and both have worked with Committee staff to develop proposed amendments to reflect that viewpoint. CAR states:
This amended bill reflects the efforts of many stakeholder meetings. Certain stakeholders expressed strong concern about the removal of agency language in the bill in print, despite the inclusion of a section explicitly preserving existing fiduciary obligations. Both the author and sponsor understand the source of the stakeholder concerns and intend to accept the Committee amendments to allay those concerns.
Proposed amendments allow revision and consolidation of certain key definitions, but retain the existing definitions and use of other key terms, notably "agent." As proposed to be amended, the author has agreed to remove provisions from the bill that have generated the most controversy, particularly those identified as potentially altering agency relationships and fiduciary duties. Among other things, the proposed amendments: (1) restore key definitions, including "agent", to Civil Code Section 2079.13, rather than defining such terms by reference to the BPC; (2) restore use of the term "agent" throughout sections of the Civil Code, instead of the previously designated term "licensee"; and (3) allow other definitions to be revised and consolidated in the BPC where doing so does not potentially alter agency relationships and is not controversial. For example, the bill replaces the term “transfer” with “sale”, “transferor” with “seller”, and “transferee” with “buyer.” The bill also in multiple locations replaces the term "selling agent" with the term “buyer’s agent” (subsequently defined as “an agent who represents a buyer in a real property transaction”) to reflect the fact that a “selling agent” is and has always been an agent working for the interest of the buyer, not the seller.
Proposed amendments regarding responsibility of third party professionals in preparing expert reports or opinions. Sellers of real estate and their agents often employ the services of professional experts, such as engineers, land surveyors, and pest control operators, to inspect the property and prepare a report or opinion dealing with matters within the scope of the expert's license or expertise. Under existing law, sellers and their agents are not liable for errors, inaccuracy or omissions in information that must be provided to prospective buyers pursuant to TDS and NHD disclosure requirements (Sections 1102.4 and 1103.4, respectively) if the error, inaccuracy, or omission was (1) not within the personal knowledge of the seller or his or her agent; (2) was based on information timely provided by the expert that is required to be disclosed; and (3) ordinary care was exercised in obtaining it. When an expert responds to a request for such a report from a prospective buyer, existing law allows the expert to indicate, in writing, an understanding the information provided will be used in fulfilling the TDS and NHD requirements, which then relieves the expert from responsibility for any items of information other than those expressly set forth in the statement.
The author and sponsor contend that professional experts should not be able "to disavow responsibility for what is in their reports," and that at least one court has held this is so, in the case of Leko v. Cornerstone Building Inspection Service, et al. (2001) 86 Cal.App. 4th 1109, 103 Cal. Rptr.2d 858. As proposed to be amended, the bill would restore existing law authorizing the expert to indicate an understanding that the information provided will be used in fulfilling TDS and NHD disclosure requirements, but would continue to delete the rule that, in furnishing such a statement, the expert is not responsible for any items of information other than those expressly set forth in the statement.
According to CAR, the proposed amendments seek to codify the holding in Leko. In that case, the Court of Appeal held that a real estate agent sued for negligent nondisclosure of defects in real property is not barred, as a matter of law under Section 1102.4, from seeking equitable indemnity from a home inspection company that allegedly breached its duty to the purchaser to discover and disclose the same defects. (Id. at 858.) In a footnote, the Court declined to reach a decision on whether a home inspector's report may fulfill a real estate agent's duty of disclosure to the purchaser, but noted that even if it can, that does not preclude the agent from seeking equitable indemnity from the home inspector when the report falls below the standard of care and contains factual misrepresentations. (Id. at 870, Footnote 3.) Some stakeholders have suggested that the unintended consequence of the proposed deletion may be a chilling effect upon third party experts to prepare specific, detailed reports or opinions on matters within their expertise, in favor of more general opinions, if the experts are not able to fully define the scope of their responsibility in preparing the report without some limitation of liability. On the other hand, this limitation from liability is not boundless because, as the Leko court explained, real estate agents may seek equitable indemnity under certain conditions, notwithstanding Section 1103.4(c). In order to ensure that the bill does not go beyond codifying the holding in Leko, the author and stakeholders have agreed to further discuss whether the deleted language narrowly accomplishes this purpose, and if not, whether additional clarifying amendments should be made to Sections 1102.4(c) and 1103.4(c).
Proposed amendments revise and recast the dual agent's duty to protect confidential information impacting price. Existing law, Civil Code Section 2079.21, expressly prohibits a dual agent from: (1) disclosing to the buyer that the seller is willing to sell the property at a price less than the listing price, without the express written consent of the seller; and (2) disclosing to the seller that the buyer is willing to pay a price greater than the offering price, without the express written consent of the buyer. In addition, the section clarifies that these rules do not alter in any way the duty of a dual agent to any principal "with respect to confidential information other than price."
According to the sponsor, ambiguity among practitioners in the field over interpretation of the phrase "confidential information other than price" allows some questionable circumstances to develop that are not fully protective of buyers and sellers in a dual agency situation. For example, is the fact that a seller has a serious illness—which is not in itself about a property's price—the type of information that may be disclosed by the dual agent under existing law? In many cases, the ramification that small fact may indeed impact price considerations if it is in fact disclosable in a dual agency relationship.
In order to clarify this issue, proposed amendments to the bill revise and recast Section 2079.21, with the most notable change being that "confidential information" is defined to mean facts relating to the client’s financial position, motivations, bargaining position, or other personal information that may impact price, such as that the seller is willing to accept a price less than the listing price or that the buyer is willing to pay a price greater than the price offered. As proposed to be amended, dual agents may not disclose any confidential information, as defined, from one principal to the other principal, and the existing savings clause as to confidential information other than price is preserved.
Clarification of disclosure requirements for property in a revocable (living) trust. Existing law, Civil Code Section 1102.2(d) exempts sales by specified fiduciaries from TDS disclosure requirements. According to CAR, these exemptions make sense because such persons are unlikely to have much knowledge about the property being sold. However, subdivision (d) also includes a special exemption from this general exemption for a person who is sole trustee (emphasis added) of a revocable trust if that person is a former owner of the property or an occupant in possession within the preceding year—in other words, a person who is deemed likely to have the knowledge to complete the TDS.
According to CAR, most present-day revocable trusts (also known as "living trusts") have two trustees—typically a husband and wife. CAR notes that current law, therefore, leads to a curious situation where a single person who puts his or her property in a living trust and who previously owned the property or lived there in the preceding years is, appropriately, not exempt from the TDS disclosure requirement. However, if a married couple puts their property in a living trust, they are exempt from the same TDS requirements, even if one spouse or both formerly owned the property or lived there in the preceding year. This apparent loophole makes little sense when the same couple must provide a TDS if they live in the property and hold it as joint tenants, but become exempt from the requirements simply by placing it in a living trust despite no other changes.
Accordingly, this bill clarifies that married persons who are trustees of property in a living trust are not exempt from providing the required TDS by virtue of the fact that neither spouse is a "sole trustee" of the living trust. Because the same loophole also exists in Section 1103.1(a)(3), with respect to NHD disclosure requirements, the bill makes identical changes to that section in order to close the loophole and effectuate the same rule for NHD statements.
Clarification that a TDS does not need to be provided for the non-residential portion of a mixed-use property. Existing law, Section 1102(a), establishes that TDS disclosure requirements apply to sales of real property which contain one to four residential units. According to the author and sponsor, the legislative history of the TDS statute supports the principle that a TDS is not required for the non-residential portion of a mixed-use property. Proponents note, for example, that: (1) the Legislature has never enacted a TDS requirement for commercial properties; (2) broker inspection duties only apply to residential portions under existing law; and (3) the content of the Transfer Disclosure Statement itself indicates that the TDS is not meant to apply to commercial, agricultural, or other non-residential uses of the property. This bill specifically provides that the TDS disclosure requirement does not apply to the sale of any portion of a property not constituting residential property with one to four dwelling units.
The Committee notes that there is relevant case law on this subject that generally supports the author and sponsor's position. In Richman v. Hartley (2014) 224 Cal.App.4th 1182, the Court of Appeal held that the seller of a mixed-use property containing a duplex was required to provide a TDS because Section 1102 "applies to all transfers of real property improved with or consisting of one to four residential units, regardless of whether it also has a commercial use." (Id. at 1188.) While the court reaffirmed that “It is true that the Legislature did not intend the Transfer Disclosure Law to apply to commercial real estate transactions” (citing Smith v. Rickard (1988) 205 Cal. App.3d 1354, 1361), the court also stated that it would not specifically address the question of whether the TDS requirement applied to the dwelling units only and not to the entire property, as that issue was not properly before it. (Richman at 1192.) This bill would address that question, however, by expressly stating that a TDS need not be provided for the non-residential portion of a mixed-use property. Given the Legislature's preference to not apply TDS requirements to commercial transactions, and given that the seller must still provide a TDS for the residential portion of the same property under Richman, this provision appears reasonable and to this date has not generated controversy among the stakeholders.
This bill closes a loophole in existing law pertaining to when the period during which an agreement can be rescinded commences. Existing law, Section 1102.3, requires the seller to provide the TDS to the buyer and then allows the buyer to have three days to cancel the transaction after the seller delivers the TDS in person, or five days if the seller mails the TDS to the buyer. According to CAR, this has been universally treated as meaning that the buyer cancellation right is triggered once the seller delivers the TDS to the buyer—in other words, after the seller and listing agent (if applicable) portions of the TDS are filled out, as that is when personal or mail delivery would then occur. Recently, however, CAR reports:
(C)reative buyers and their agents have been arguing that the rescission period begins once the buyer’s agent fills out their visual inspection section. This is clearly inconsistent with the intent of [Section 1102.3] which bases a cancellation right on the delivery of the TDS from the seller to the buyer. However, this is being used to “game” the system by essentially creating an endless recession period for the buyer because the buyer’s agent simply delays filling out his or her portion. While this attempt to “game” the system seems a transparent misinterpretation of the law, it is a growing issue.
Accordingly, this bill seeks to close this apparent loophole in the law by clarifying that the TDS is complete for the purposes of this section once the seller and the seller's agent (if applicable) have filled out the appropriate sections (i.e. Sections I, II, and III) of the form. In other words, the bill establishes that a buyer’s agent cannot effectively delay start of the rescission period as long as he or she intentionally refrains from completing Section IV of the TDS.
Proposed amendments restore existing law until further amendments can be developed to ensure electronic delivery of documents complies with UETA. As currently in print, this bill expressly allows both the TDS and NHD statements to be delivered in the form of an electronic record (Sections 1102.3(c) and 1103.3(c)), and as described above, would allow the buyer five days to cancel the transaction after electronic delivery. In order to ensure that new statutory authority to electronically deliver these disclosures complies with the Uniform Electronic Transactions Act (UETA) (Civil Code Section 1633.1 et seq.), the author has agreed to amend the bill to remove such authority until an appropriate amendment can be developed to ensure that electronic delivery is limited to instances in which the parties have agreed to conduct the transaction by electronic means pursuant to UETA.
Proposed amendments to this bill remove opposition from Consumer Attorneys. In April 2017, the Consumer Attorneys of California (CAOC), for a number of stated reasons, expressed opposition to this bill, in the same form as currently in print, and its companion legislation, AB 749. With these proposed amendments, they have removed their opposition and taken a position of "concern." CAOC now states:
The Consumer Attorneys of California attended stakeholder meetings in the interim to discuss our concerns that these bills, combined, substantially weaken the legal rights of homebuyers. We remove our opposition to AB 1289 (Arambula) and AB 749 (Irwin), as proposed to be amended, and have taken a concern position as we continue to work with all parties as the bill progresses.
There are complicated, yet important, protections under current law to protect real estate transferees. We thank the authors and the California Association of Realtors for working with us to evaluate these issues in-depth to ensure that these bills do not negatively change current agency relationships or alter license exemptions.
Pending related legislation. AB 749 (Irwin), among other things, revises and recasts many key real estate-related definitions applicable to Civil Code provisions amended by this bill, and consolidates them in the Business & Professions Code (BPC). AB 749 also makes numerous substantive changes to the Real Estate Law in the BPC, including provisions related to the authority of the Real Estate Commissioner and licensing requirements for real estate brokers. AB 749 is currently being heard in the Assemble Business & Professions Committee.
AB 1059 (Gonzalez Fletcher) is being heard by the Assembly Judiciary Committee in the same hearing as this bill. As proposed to be amended, AB 1059 seeks to require an additional disclosure about dual agency to be provided to principals in commercial real estate transactions, as specified. AB 1059 also proposes different definitions for some key real estate terms in the Civil Code that will require reconciliation with this bill in the future.
AB 1626 (Irwin) would describe when dual agency exists and would specify, with respect to certain provisions of existing law, some of the duties of licensees in conducting dual agency transactions. The bill would also revise the mandatory disclosure form used in dual agency transactions, as specified. AB 1626 currently sits in the Assembly Judiciary Committee as a two year bill.
REGISTERED SUPPORT / OPPOSITION:
Support
California Association of Realtors (sponsor)
Opposition
None on file
Analysis Prepared by: Anthony Lew / JUD. / (916) 319-2334
Discussed in Hearing
Assembly Floor
Senate Floor
Senate Standing Committee on Judiciary
Assembly Standing Committee on Appropriations
Bill Author
Bill Co-Author(s):