More Seller Disclosure in 2014
The Transfer Disclosure Statement is a required (in most cases) disclosure for sellers in California. It is a three page document that is completed by the seller on pages 1 and 2, and completed by the participating Realtors on page 3, then signed by all principals in the transaction and their Realtors once completed, also on page 3. This year’s Transfer Disclosure Statement is about to be updated again. The new addition will be an additional seller question related to construction defect claims.
From the California Association of Realtors site:
TDS Revised to Include Construction Defect Litigation
Effective July 1, 2014, the Real Estate Transfer Disclosure Statement (TDS) has been revised to require disclosure of whether a seller is aware of certain construction defect claims under SB 800 (at Cal. Civil Code §§ 895, et seq.) as specified.
The TDS is generally a required disclosure for sales transactions involving one-to-four residential units (with certain exemptions). Under the new law, the revised TDS will inquire, in question 16 of Section 11C, as to whether a seller is aware of any 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 under sections 910 or 914 alleging a defect or deficiency in the real property or common areas.
For sellers further understanding, REALTORS® can obtain a copy of SB 800 (Cal. Civil Code §§ 895 to 945.5) as a PDF on the California Association of Realtors website.
Senate Bill 652 (codified as Cal. Civil Code section 1102.6) (law itself takes effect January 1, 2014, but is operative on July 1, 2014).
When the time comes for you to complete disclosures, your Realtor will guide you through that. This post is for general educational information only and is not to be mistaken as legal advice.
Note: I added a new Category called “Disclosure” to share these kinds of topics.