Source: https://www.car.org/riskmanagement/disclosure-charts/sales-disclosure-chart
Timestamp: 2019-04-23 16:55:21+00:00

Document:
REALTORS® know very well the importance, and the complexity, of the various state and federal disclosure laws governing real estate transactions in California. This Sales Disclosure Chart is designed to provide REALTORS® and their clients with an easy-to-use reference guide for determining the applicability of these laws to the sales transactions most commonly handled by real estate licensees.
Be sure to check the detailed disclosure information in the Summary Disclosure Chart since there may be exceptions or special exemptions to a disclosure requirement.
The Sales Disclosure Chart addresses the general applicability of common disclosure requirements in particular types of transactions, but does not cover all disclosures required by law such as additional local requirements.
Finally, certain transactions, including new home, subdivision, and common interest development sales, are subject to separate disclosure requirements.
Cal. Civ. Code §§ 2079.13 et seq.
Cal. Civ. Code § 1103.4.
§§ 8589.4, 8589.5; Cal. Civ. Code §§ 1103 et seq.
Cal. Civ. Code §§ 2079 et seq.
Cal. Civ. Code §§1102.6, 1102.6d.
Cal.Health & Safety Code § 17926.
*Installation is not a precondition of sale or transfer of the dwelling.
See Summary Disclosure Chart for additional details.
Cal. Bus. & Prof. Code §10147; Cal. Gov't Code §§ 8875.6, 8875.9, 8893.2, 8893.3; Cal. Civ. Code § 2079.9.
*if deemed a "material fact"
**Statute applies only to real estate but may be required under "material fact" analysis.
Cal. Pub. Res. Code §§ 2621 et seq.; Cal. Civ. Code §§ 1103 et seq.
EPA's Portfolio Manager Energy Star Report 15.
This law has been repealed effective January 1, 2016. Cal.Pub.Res. Code § 25402.10.
*Required only for FHA loans or HUD-owned property by lender.
AB may be used(applies only to federal withholding).
Cal. Rev. & Tax Code §§ 18662, 18668; 26 U.S.C. §1445.
*If seller eligible, AS or other form required to avoid withholding by escrow.
Cal. Civ. Code § 2079.10.5.
Cal. Code of Civil Procedure § 836(f). General duty to disclose. See Material Facts.
Cal. Civ. Code § 2079.10; Cal. Pub. Res. Code §§ 25402.9, 25942.
Cal. Bus. & Prof. Code § 10149; Cal. Gov't Code §§ 8897.1, 8897.5; Cal. Civ. Code § 2079.8.
*See Summary Disclosure Chart for Exemptions.
Cal. Civ. Code § 1102.17; Cal. Code of Civ. Proc. § 731a.
42 U.S.C.S. § 4852d; 40 CFR Part 745.
*Applies only to residential property built before 1978. See the Summary Disclosure Chart for exemptions.
The ESD or SPQ is required contractually by the RPA-CA depending on whether the transaction is TDS exempt. If a TDS is required, then an SPQ is also required. IF the transaction is TDS exempt, then the ESD is required.
Case law; Cal. Civ. Code §§ 2079 et seq.
Cal. Civ. Code § 2079.10a.
Mello-Roos, 1915 Bond Act Assessments9 , and voluntary contractual assessment.
§ 1102.6b; Cal. Gov't Code §§ 53340.2, 53754, Cal. Str. & H. Code § 5898.24.
§ 25400.28 (disclosure); §§ 25400.11(q) and (r) (definitions).
*Exempt if located in a mobilehome park or manufactured home park.
Cal. Civ. Code § 1102.15.
RGM may be used (optional).
Health & Safety Code §§ 26140, 26141, 26147.
CDHS has not yet established limits.
The form NHD has been discontinued in the C.A.R. forms library. The statutory Natural Hazard Disclosure Statement which is provided as part of the third party NHD private report fulfills the statutory requirement.
Cal. Civ. Code §§ 1103 et seq.
Cal. Civ. Code § 1099.
*Seller or Seller’s agent must deliver inspection report and subsequent certification (of work completed) to Buyer only if required by contract or the Buyer’s lender.
Cal. Civ. Code § 1102.6e.
Cal. Civ. Code § 2079.7.
Cal. Pub. Res. Code § 2694; Cal. Civ. Code §§ 1103 et seq.
Cal. Health & Safety Code §§ 13113.7, 13113.8, 18029.6.
Cal. Health & Safety Code §§ 13113.8, 18029.6; 25 Cal. Code Regs. § 5545.
*Required for single-family or two-unit dwellings and factory-built real property only.
Cal. Gov't Code § 8589.3; Cal. Civ. Code §§ 1103 et seq.
Cal. Pub. Res. Code §§ 4125, 4136; Cal. Civ. Code §§ 1103 et seq.
Cal. Civ. Code § 1102.6c.
Cal. Civ. Code §§ 1102 et seq.
Cal. Gov't. Code § 51183.5; Cal. Civ. Code §§ 1103 et seq.
Cal. Civ. Code §§ 1101.4(b), 1101.5(a) (d).
Jan. 1, 2019 (all prop.).
Effective date of law where some types of permitted improvements are made is Jan. 1, 2014.
See the Summary Disclosure Chart for exemptions.
C.A.R. Forms TDS and SPQ should be used, or the ESD if the property is TDS-exempt. C.A.R. Form WCMD is optional.
Cal. Civ. Code §§ 1101.4(c), 1101.5(e), 1102.155.
Effective date for two or more unit resid. real prop. and commercial real prop. is Jan. 1, 2019.
Cal. Health & Safety Code §§ 19211, 18031.7.
25 Cal. Code Regs. §4102.
This disclosure requirement applies to transfers of precast concrete or reinforced/unreinforced masonry buildings with wood-frame floors or roofs. Though this requirement is most relevant to commercial properties, the law does not specifically exempt masonry buildings used for residential purposes.
Transfers by fiduciaries (e.g., trustees) administering trusts generally are exempt from this disclosure requirement. However, if the trustee is a natural person who is the 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, then compliance is required.
The delivery of this booklet is not mandatory (unless required by contract), but provides important legal protections to a seller or real estate agent who elects to provide the booklet.
This disclosure requirement applies to transferors of "personal, commercial, or residential property" for which flood-related disaster assistance has been provided. Vacant land is not specifically addressed by this law. As a practical matter, however, a seller generally can determine, at the time federal disaster assistance is received, whether flood insurance is required by federal agencies for the property in question.
California law requires delivery of The Homeowner's Guide to Earthquake Safety in connection with transfers of real property. However, it may be prudent to provide this booklet to purchasers of personal property manufactured or mobile homes.
Federal law does not specifically require these disclosures in sales of personal property mobilehomes. However, federal regulators have taken the position that mobilehomes built before 1978 are covered by this law.
A seller or real estate agent involved in the transfer of real property or a mobilehome may be liable for failing to disclose material facts affecting the value or desirability of the property. Whether or not a particular fact is "material" depends on a variety of factors. A seller or real estate agent who is unsure as to the materiality of a particular fact should consult an attorney. Alternatively, many sellers and real estate agents resolve such doubts in favor of disclosure to minimize exposure to liability. While the disclosure of certain material facts sometimes must be made in a particular format (e.g., the Transfer Disclosure Statement, or the Manufactured Home or Mobile home Transfer Disclosure Statement), the law generally does not regulate how material facts must be disclosed (though written disclosure is almost always recommended). However, the RPA-CA requires that the seller complete an SPQ in transactions where a TDS is required, or if a TDS is not required, that the seller complete an ESD.
This information, as it pertains to Mello-Roos Community Facilities Districts, generally applies to resale transactions. Subdividers and their agents may have to comply with separate Mello-Roos district disclosure obligations under California Government Code § 53341.5.
California's Toxic Mold Protection Act requires that in residential and commercial/industrial lease transactions, and in commercial/industrial sales transactions, landlords/sellers disclose to tenants/buyers mold that either exceeds permissible limits set by California's Department of Health Services (CDHS) or poses a health threat. This disclosure need not be made until the CDHS establishes permissible mold exposure limits. The CDHS has not yet taken this action, and the Act does not specifically require any alternative disclosure in the interim.
The delivery of this booklet is not mandatory (unless required by contract), but provides important legal protections to a seller or real estate agent who elects to provide the booklet. This booklet is often combined with The Homeowner's Guide to Earthquake Safety and the lead hazard disclosure pamphlet Protect Your Family From Lead In Your Home (which are mandatory in certain transactions).
California law requires the seller of any real property to certify that new and replacement water heaters have been braced, anchored, or strapped to resist movement during an earthquake. Though these statutory requirements are most relevant to water heaters located in residential properties, they do not specifically exempt commercial or industrial properties.
California law requires all new and replacement water heaters, and all existing residential water heaters, to be braced, anchored, or strapped to resist movement during an earthquake, including those in mobilehomes and manufactured homes.
California law sometimes requires that a specific form (or exact language) be used. Examples are the AD, FLD, TDS, MHTDS, and the NHD. Other times, the law requires a disclosure but doesn't mandate that particular language be used. However, C.A.R. provides forms for that purpose--indicated in this chart by the words "may be used." The law doesn't require the use of these forms. Examples are the AVID, MCN, NTF, SBSA, ESD, SPQ, AS, AB, WHSD, REO, and REOL.
The disclosure required by this law consists of four documents: the Disclosure Summary Sheet, the Statement of Energy Performance, the Data Checklist, and the Facility Summary, all of which must be generated through the US Environmental Protection Agency (EPA) Energy Star Portfolio Manager. This law has been repealed effective January 1, 2016. Cal.Pub.Res. Code § 25402.10 .
Smoke alarms are required under state law to be installed on all properties intended for human occupancy. However, as a point of sale requirement there are limited exceptions including bankruptcy, trust, probate and foreclosure sales, but not REO sales. It is prudent risk management to have the smoke alarms installed regardless of the type of property being sold. This is because it is often required by both locations and lenders, in addition to the state law requirement.
This chart is just one of the many legal publications and services offered by C.A.R. to its members. For a complete listing of C.A.R.'s legal products and services, please visit C.A.R. Member Legal Services.
Readers who require specific advice should consult an attorney. C.A.R. members requiring legal assistance may contact C.A.R.'s Member Legal Hotline at (213) 739-8282, Monday through Friday, 9 a.m. to 6 p.m. and Saturday, 10 a.m. to 2 p.m.
Copyright© 2019 CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.). Permission is granted to C.A.R. members to reprint this material in hardcopy or PDF format only for personal use or with individual clients. This material may not be used or reproduced for commercial purposes. Other reproduction or use is strictly prohibited without the express written permission of the C.A.R Legal Department. All rights reserved. Revised by Robert Bloom, Esq.
The information contained herein is believed accurate as of January 10, 2019. It is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice. Advice in specific situations may differ depending upon a wide variety of factors. Therefore, readers with specific legal questions should seek the advice of an attorney.

References: § 1103
 § 17926
 §10147
 § 2079
 § 25402
 §1445
 § 2079
 § 836
 § 2079
 § 10149
 § 2079
 § 1102
 § 731
 § 4852
 § 2079

§ 1102
 § 5898

§ 25400
 § 1102
 § 1099
 § 1102
 § 2079
 § 2694
 § 5545
 § 8589
 § 1102
 § 51183
 §4102
 § 53341
 § 25402