California Disclosures You Should Know

In case you haven't participated in a CA real estate recently, the California real estate purchase contract is now over 11 pages in length. This fact alone should be sufficient to convence any luxury home buyer of the need to have an expert buyer agent by your side! Below you will find important information about mandatory disclosures you are entitled to know when purchasing real property in the state of California.

Material Fact Defined

A fact that may play a part in a buyer or seller's decision-making process is defined as a "material fact.". Remember - all seller's agents are required to disclose material facts to potential buyers. This is also considered a "material fact." Structural defects and other statements regarding the condition of a property are considered to be material facts. The amount of property taxes paid per year by the homeowner is a material fact. The square footage of a home is a material fact.

Helpful Disclosure Booklet

The California Department of Real Estate (DRE) publishes a booklet for consumers called Disclosures in Real Property Transactions which provides a detailed review of current information about all the required disclosures. If you would like request a copy of this helpful booklet, please contact us now and we will send one to you. Don't forget to include your mailing address in the email.

The major required disclosures include the following:

• Real estate transfer disclosure statement

• Natural hazards disclosure statement

• Mello-Roos bonds and taxes (special assessment districts)

• Ordnance location (ordnance refers to military weapons and ammunition)

• Earthquake guides

• Smoke detector statement of compliance

• Disclosure regarding lead-based paint hazards

• California environmental hazards pamphlet

• Notice regarding the advisability of title insurance

• Certification regarding water heater’s security against earthquake

• Locations of registered sex offenders (Megan’s law)

• Visual inspection by agents

• Agency relationship disclosure

• Disclosure of the negotiability of real estate commissions

• Association disclosures to common interest owners

• Construction and soil defects - Prior, pending or threatened litigation

• Death on property

• Errant golf balls

• Historical conservancy/historical review

• Fireplaces-properties that contain a Rampart General "brand" fireplace

• Attractions and amusement parks

• Attic Furnaces

Agent Responsibilities!

Most of these mandatory disclosures simply require that the home seller reveal what they already know concerning their property. Both the buyer’s agent and the seller’s agent must conduct a reasonably competent and diligent visual inspection of the accessible areas of the property and disclose their findings.

As a Luxury Home Buyer - Know Your Entitlements

Remember - the seller does not have to conduct any expert investigations for the buyer’s benefit. However, if the seller has hired an expert, they are required to provide a copy of the expert’s report to the buyer. Also, the seller is not obliged to repair or correct any problems or defects based on these findings, except by mutual agreement with the buyer.

If you have any questions about CA real estate disclosures, please contact us for more information on this important topic.