Seller’s Disclosure Obligation Further Expanded
Sellers of single-family residential real property in California are required by law to provide a real estate transfer disclosure statement, with certain limited exceptions. The contents of this disclosure are specificed by law. (California Civil Code, Section 1102.)
Beginning July 1, 2014, a seller’s disclosure obligation in connection with the sale of a single-family (one to four unit) residential property is being expanded to include information about certain specified construction defect claims. Under the new law, the transfer disclosure statement will inquire whether a seller is aware of the following claims threatening to or affecting the real property: (1) claims for damages by the seller based on construction defects; (2) claims for breach of warranty; or (3) claims for breach of an enhanced protection agreement, including any lawsuits or claims for damages alleging a defect or deficiency in the real property or common areas.
If you are a seller of real property in California beginning July 1, 2014, be sure to ask your real estate professional to provide you with a copy of SB 800 so you are fully informed about the new required disclsoures.