Like most states, California also requires its home sellers to disclose, in writing, important details about the house they are selling. Such seller disclosures are applicable to all homeowners whose properties are on the market, whether it is high-rise condos, standalone houses, or mobile homes.
Such disclosures are crucial as they let buyers know everything about a property to make an informed decision. This also reminds sellers that they are legally accountable to be transparent about their property’s state and can be sued for hiding defects.
Understanding seller disclosures California can be daunting for many. To make matters easier, this article outlines some key seller disclosures in California.
- Transfer Disclosure Statement (TDS)
This is one of the most important seller disclosures California. There are many sections in this statement. The sellers cite home inspections performed before the offer was made.
Then they list out all the systems and appliances that are included in the sale and their working condition.
A home seller must disclose all the material problems and defects their property might have.
These are the defects that are not evident but can pose a huge risk to the inhabitants, thereby affecting the property’s value negatively.
The homeowner should also reveal issues related to soil problems, flood, or zoning violations if any.
Any lawsuits that impact the seller’s title should also be disclosed.
- Toxic Substances
Selling a house can be tedious and may involve a lot of paperwork. Filling out the TDS is not the end of seller disclosures California. Sellers also need to inform the buyers about the presence of any harmful substance like asbestos or lead paint.
As these substances are toxic, they require specific disclosures to abide by the law. Lead-based paint was banned for residential usage in the state in 1978. Nonetheless, many properties that were initially painted with such paint still stand and pose severe implications
Hence, homes built prior to 1978 should make this disclosure to the buyers.
- Death at the Property
The California law mandates sellers to tell buyers if a death has taken place in the home in the last three years. This includes death by natural causes too.
If buyers ask the seller if any death has occurred even before three years ago, then the homeowner is obligated to reply truthfully.
- Property Taxes
As a seller, you will have to provide a disclosure notice that includes the title “Notice of Your Supplementary Property Tax Bill”.
This is a set format that informs the buyer that they will have to get the property revalued by a tax assessor once the ownership changes.
Due to a change in ownership, the buyer pays supplemental taxes. These bills are sent to the buyer directly and must be paid to the local tax collector.
- Natural Hazards Disclosure
As part of the seller disclosures California, a seller should give written notice to the buyer if the house is in one or more of the below-mentioned zones:
- Wildland area
- Seismic hazard zone
- Special flood hazard zone
- Earthquake fault area
- Fire hazard severity zone
- An area prone to flooding
It is important to make this disclosure because they may restrict certain developments, and put limitations on taking insurance or getting help during a disaster.
- Water Heater Strap
The Sunshine State is prone to earthquakes. So, when the ground shakes, a great amount of damage can be done by a water heater tipping over. Short circuits can cause fires, hot water can damage the property and the falling tank can cause impairment.
Therefore, if your house has a water heater, you need to mention to the buyer that it is braced or strapped to prevent falling due to the earthquake.
- Mello-Roos Bonds
According to the Mello-Roos Community Facilities Act, the local government can sell bonds to fund public infrastructure and improvements. Many tax assessment districts have been set up in the state for this purpose.
A seller needs to inform in writing if their house comes under such a district. The notice should include information about the special taxes that are collected in installments.
Disclosures for these can be taken from the local agencies that charge taxes under this act.
- Ordnance Locations
Ordnance locations are places that have been under military use in the past. This points towards the possibilities of live ammunition in that area.
If your property is situated within one mile of ordnance locations, then it needs to be mentioned to the buyer.
Final Word
The list above is not an exhaustive one and there are several additional seller disclosures in California. If you are an FSBO seller and these disclosures seem very challenging to you, then you can consider using flat fee MLS California companies. Such companies will make sure that your disclosure statement is ready before your house is listed on the local MLS. This will increase your credibility as a seller.
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