Residential Property Transfer Disclosures

Civil Code Division 2, Part 4, Title 4, Chapter 2, Article 1.5 deals with disclosures upon the transfer of residential property in the acquisition of property in California.

Section 1102 provides that this article applies to any transfer by sale, exchange, real property sales contract, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements of any single-family residential property. Any waiver of the requirements of this article is void as against public policy.

Section 1102.1 contains a number of statements of legislative intent.

Section 1102.2 specifies that this article does not apply to thirteen specified items.

Section 1102.3 states that the seller of any single-family real property subject to this article is required to deliver to the prospective buyer the completed written statement required by this article, as specified in three manners.

Section 1102.3a says that the transferor of any manufactured home or mobilehome subject to this article must deliver to the prospective transferee the written statement required by this article, as specified.

Section 1102.4 provides that neither the seller nor any seller’s agent or buyer’s agent is 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 buyer’s agent, was based on information timely provided by public agencies or by other persons providing information that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting it.

Section 1102.5 explains that, 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 the seller’s agent has made a reasonable effort to ascertain it, the seller may use an approximation of the information.

Section 1102.6 provides that the disclosures required by this article pertaining to the property proposed to be transferred are set forth in the specified disclosure form.

Section 1102.6a allows any city or county to elect to require disclosures on the form set forth in law.

Section 1102.6b explains that this section applies to all sales of real property for which all three specified conditions apply. The seller of any real property subject to this section is required to make a good faith effort to obtain a disclosure notice concerning the special tax, or a disclosure notice concerning an assessment installment, from each local agency that levies a special tax pursuant to the Mello-Roos Community Facilities Act, and other specified acts.

Section 1102.6c states that it is 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 specified items.

Section 1102.6d provides that, except for manufactured homes and mobilehomes located in a common interest development, the disclosures applicable to the resale of a manufactured home or mobilehome are set forth in the specified disclosure form.

Section 1102.6c requires the transferor to provide, at the same time as the transfer disclosure statement required, is provided if the document required has not already been provided, an additional disclosure statement containing all of the six specified items.

Section 1102.6f specifies that the seller of any real property subject to this article that is located in a high or very high fire hazard severity zone must provide a disclosure notice to the buyer, if the home was constructed before January 1, 2010, that includes specified information. If obtained, a seller must share a final inspection report with the buyer.

Section 1102.6g requires every contract for the sale of real property to contain, in no less than 8-point type, a specified notice. This notice must also be delivered by a licensed person refinancing a first lien purchase money loan secured by residential real property containing no more than four dwelling units, either prior to, or with, the loan estimate as required by the federal Truth in Lending Act.

Section 1102.6h says that a seller of a single-family residential property who accepts an offer for the sale of the single-family residential property within 18 months from the date that title for the single-family residential property was transferred to the seller is required to disclose, in addition to any other disclosure required pursuant to this article, to the buyer both of the specified items of information.

The seller’s obligation to disclose the room additions, structural modifications, other alterations, or repairs made to the property performed by a contractor may also be satisfied by providing a list of room additions, structural modifications, other alterations, or repairs performed by, and provided by, the contractor with whom the seller contracted for the room additions, structural modifications, other alterations, or repairs.

Section 1102.6i says that, in addition to any other disclosure required pursuant to this article, the seller of any real property subject to this article, or the seller’s agent, must deliver to the prospective buyer a disclosure statement that provides as specified. This section does not apply to the sale of a building within three years of the issuance of the certificate of occupancy for the building.

Section 1102.6j provides the seller of a single-family residential property subject to this article must disclose, in writing, the existence of any state or local requirements or restrictions relating to the future replacement of existing gas-powered appliances that are being transferred with the property to the extent they or their agent are aware of those requirements or restrictions. 

Section 1102.6k states that it is the sole responsibility of a seller of a single-family residential property subject to this article who has actual knowledge of the existence of any residue from smoking tobacco or nicotine products, or any history of occupants smoking tobacco or nicotine products on the property, to disclose that knowledge to the buyer in writing. The phrases “residue from smoking tobacco or nicotine products” and “smoking tobacco or nicotine products.”

Section 1102.7 states that each disclosure required by this article and each act which may be performed in making the disclosure, must be made in good faith. The term “good faith” is defined.

Section 1102.8 explains that 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 which may exist in order to avoid fraud, misrepresentation, or deceit in the transfer transaction.

Section 1102.9 states that any disclosure made pursuant to this article may be amended in writing by the seller or his or her agent.

Section 1102.10 provides that delivery of disclosures required by this article are to be by personal delivery to the tranferee or by mail to the prospective transferee.

Section 1102.11 says that any person or entity, other than a real estate licensee, acting in the capacity of an escrow agent for the transfer of real property subject to this article are not to be deemed the agent of the transferor or transferee for purposes of the disclosure requirements of this article, unless the person or entity is empowered to so act by an express written agreement to that effect. The extent of an agency is governed by the written agreement.

Section 1102.12 says that, if more than one licensed real estate broker is acting as an agent in a transaction subject to this article, the broker who has obtained the offer made by the transferee must deliver the disclosure required by this article to the transferee, unless the transferor has given other written instructions for delivery.

Section 1102.13 provides that no transfer subject to this article is to be invalidated solely because of the failure of any person to comply with any provision of this article. However, any person who willfully or negligently violates or fails to perform any duty prescribed by any provision of this article is liable in the amount of actual damages suffered by a transferee.

Section 1102.15 states that the seller of residential real property subject to this article who has actual knowledge of any former federal or state ordnance locations within the neighborhood area must give written notice of that knowledge as soon as practicable before transfer of title. The phrases “former federal or state ordnance locations” and “neighborhood area” are defined.

Section 1102.155 provides that the seller of single-family residential real property subject to this article must disclose, in writing, that specified law requires that California single-family residences be equipped with water-conserving plumbing fixtures, and disclose whether the property includes any noncompliant plumbing fixtures.

Section 1102.156 states that a seller of any real property who received domestic water storage tank assistance, or is aware the real property received assistance and the real property currently still has the domestic water storage tank, is required to deliver to the prospective buyer a disclosure statement that includes all of the specified information in substantially the specified form.

Section 1102.16 provides that the disclosure of the existence of any window security bars and any safety release mechanism on those window security bars must be made pursuant to specified provisions.

Section 1102.17 states that the seller of residential real property subject to this article who has actual knowledge that the property is adjacent to, or zoned to allow, an industrial use described in the Code of Civil Procedure.

Section 1102.19 says that a seller of a real property subject to this article that is located in a high or very high fire hazard severity zone  is required to provide to the buyer documentation stating that the property is in compliance with specified law or local vegetation management ordinances.