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13 Cards in this Set
- Front
- Back
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Caveat emptor |
Means "let the buyer beware" |
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8 Mandatory Disclosures |
1. Agency Disclosure (2): disclosure form & confirmation statement 2. Transfer Disclosure 3. Natural Hazards Disclosure 4. Environmental Hazards Booklet 5. Agent's Inspection Disclosure 6. Megan's Law Disclosure 7. Mello-Roos Bonds 8. Supplemental Disclosure |
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Agency Disclosure Form |
1 of 2 mandatory forms that reveal the legal duties imposed on seller, buyer or agent. Privided by agents to seller/buyer before signing listing/purchase agreements. Presented asap to seller before buyer's offer is presented. Both parties sign, agent keeps copy. Duties are: seller's interest is priority, obedience to seller's instructions, loyalty and utmost care. |
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Agency Confirmation Statement |
1 of 2 mandatory forms that disclose which party each agent is representing. Can be verbal initially, but must be written and signed by both parties before purchase agreement is signed. Can be a separate document or part of the purchase agreement. The relationships are "accepted and clear" when all parties, including agents, sign. |
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Transfer disclosure |
A form filled out by the seller and delivered to the buyer before making a purchase offer. (If not presented, buyer should be informed of this right in writing. Has 3 days to terminate offer.) Part A: identifies items in home & state their operational status. Part B: list any significant defect of the home. Part C: information on any improvement or alterations, issues in the neighborhood or neighbors, zoning of the locality.
For 1-4 unit single/multiple family property, condo's, mobile homes. Exceptions: not required for; spouses, direct descendants, gov entities, foreclosure, court order or newly constructed sub. |
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Natural Hazard Disclosure |
Required when a potential threat from natural disasters exist; landslides, earthquakes, floods, forest fires, etc.
If built before 1960 sellers must disclose if in earthquake-prone area. Give booklet published by CA Seismic Safety Commission. A residential earthquake hazards report should be filled out by agent and signed by seller and buyer.
FEMA (Fed Emergency Mgmt Agency) has mapped special flood hazard areas. The listing agent must disclose this property is in such a zone to buyer.
Fire hazard areas are noted in County Recorder office, County Assessor office or county planning agency. If in a fire zone, agent must inform seller and disclose to buyer. |
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Enviromental hazard disclosure |
Agent must inform buyer, or landlord/lessee, of any known harmful hazard info on property and give a BRE pamphlet, "environmental hazards: a guide for homeowners, buyers, landlords and tenants." If done, agent is not liable for any additional disclosures.
Built prior to 1978, seller must disclose known knowledge of lead paint and provide the EPA's booklet, "Protect your family from lead in your home". (Agents can be fined three times the damage if they fail this obligation.) |
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Agent's Inspection Disclosure |
Listing agents, independent from a seller, must carefully inspect and disclose all material facts about the property with this form. |
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Megan's Law |
The agent informs buyer or lessee about the public availability of the database for registered sex offenders: www.meganslaw.ca.gov |
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Mello-Roos Bonds |
Unless noted in local official tax copy, under state law seller must separately disclose if property has this assessment. These help fund; parks, police, streets and various community improvements. |
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Supplemental statutory disclosure |
State law to inform regarding; effects of nearby airport, industrial or commercial zone, military site, death occurrence (3 yrs), illegal controlled substances released. |
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Brownfields |
Contaminated soil from hazardous waste. |
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Agency relationship disclosure process: |
1. Disclose: in writing 2. Elect: understand 3. Confirm: sign |
