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
A. Definition of Business
Opportunity
F. Fictitious Business Name (DBA)