State of California
Department of Real Estate
Disclosures
in
Real
Property
Transactions
Sixth
Edition
2005
ARNOLD SCHWARZENEGGER
Governor
State of California
SUNNE
WRIGHT MCPEAK
Secretary
Business, Transportation and Housing Agency
JEFF
DAVI
Commissioner
Department
of Real Estate
2005
booklet was revised pursuant to a consulting contract with Wallace,
Puccio & Garrett; Principal Author and Editor – S.
Guy Puccio.
Preface
The California Department of Real Estate has published this booklet in response to an apparent need for information concerning disclosures required in real property transactions. This booklet is limited to the most common disclosures required by statute and does not include disclosures required by agreement between the principals (buyer and seller; borrower and lender; lessee and lessor, etc.).
Should you need assistance or further information, consult the statutory references included, an attorney or a knowledgeable real estate professional. Also, this booklet has a list of government agencies which you may contact for further information, as appropriate.
Because the laws concerning disclosure obligations may change, you should use this booklet only as a general source of information.
TABLE
of CONTENTS
Part I Transfer and Financing of Real Property
Section
I Disclosures Required of a Seller
and/or a Real Estate BROKER/Agent
A. Disclosures Upon Transfer of Residential Property
2. Real
Estate Transfer Disclosure Statement
3. Local
Option Real Estate Transfer Disclosure Statement
10. Methamphetamine
Contamination
C. Smoke Detector Statement of Compliance
D. Disclosure Regarding Lead-Based Paint Hazards
E. California’s Environmental Hazards
Pamphlet
F. Delivery of Structural Pest Control Inspection and
Certification Reports
G. Energy Conservation Retrofit and Thermal Insulation
Disclosures
H. Foreign Investment in Real Property Tax Act
I. Notice and Disclosure to Buyer of State Withholding
on Disposition of California Real Property.
K. Notice Regarding the Advisability of Title Insurance
L. Certification Regarding Water Heater’s
Security Against Earthquake
M. Data Base – Locations of Registered Sex
Offenders
Section
II Disclosures Required of Real Estate Agents
in the Transfer of Residential Real Property
B. Agency Relationship Disclosures
C. Disclosure of the Negotiability of Real Estate
Commissions
D. No Disclosure Required for Manner/Occurrence of
Death; Affliction of Occupant with Aids
E. Disclosure of Sales Price Information
Section
III Disclosures Required when Financing Real Property
B. Seller Financing Disclosure Statement
C. California Required Disclosures to Borrowers
D. California Required Disclosures to Certain Lenders
or Promissory Note Purchasers
1. General Disclosure Requirements.
3. Construction
Loans and Multiple Security Properties in Multi-Lender Transactions.
4. Loan
Servicing in Multi-Lender and in other than Multi-Lender Transactions.
E. Notice of Transfer of Loan Servicing
F. Notice of Borrower’s or
Lender’s Right to Copy of Appraisal Report
G. Credit Terms – Truth-in-Lending and
Regulation Z
I. California High Cost
Mortgage/Loan Disclosures
J. Real Estate Settlement Procedures Act (RESPA)
K. Advance Disclosures in Loan Transactions Subject to
TILA and RESPA
L. Disclosure by Agent Receiving Compensation from a
Lender
M. Adjustable Rate Loan Disclosure
N. Equal Credit Opportunity Act – Notice of
Adverse Action – Regulation B
O. Certain Obligations of Consumer Credit Reporting
Agencies
P. Disclosure Required by the Housing Financial
Discrimination Act of l977 (Holden Act)
Section
IV DISCLOSURES RELATIVE TO NEW RESIDENTIAL SUBDIVISIONS
A. Public Report: Disclosure of Material Facts about a
Subdivision
B. Disclosure of the Right to Rescind
C.
Disclosure and Notice of Blanket Encumbrance
E. Statement of Defects Disclosure for a Common
Interest Development Conversion
F. Notices to Tenants to Disclose Intent to Convert an
Apartment to Individual Ownership
Part
II Transfer OF A BUSINESS OPPORTUNITY