Bill Text: CA AB1289 | 2017-2018 | Regular Session | Amended
Bill Title: Real property disclosure requirements.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2018-09-29 - Chaptered by Secretary of State - Chapter 907, Statutes of 2018. [AB1289 Detail]
Download: California-2017-AB1289-Amended.html
Amended
IN
Assembly
January 12, 2018 |
Amended
IN
Assembly
April 06, 2017 |
Assembly Bill | No. 1289 |
Introduced by Assembly Member Arambula |
February 17, 2017 |
LEGISLATIVE COUNSEL'S DIGEST
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 1086 of the Civil Code is amended to read:1086.
For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code apply.SEC. 2.
Section 1087 of the Civil Code is amended to read:1087.
A multiple listing service (MLS) is a facility of cooperation ofSEC. 3.
Section 1088 of the Civil Code is amended to read:1088.
A listing may not be placed in a multiple listing service unless authorized or directed by the seller in the listing.SEC. 4.
Section 1089 of the Civil Code is repealed.SEC. 5.
Section 1090 of the Civil Code is amended to read:1090.
Nothing in this article shall preclude a listingSEC. 6.
Section 1102 of the Civil Code is amended to read:1102.
(a) Except as provided in Section 1102.2, this article applies to any sale of residential property.(a)In enacting Chapter 817 of the Statutes of 1994, it was the intent of the Legislature to clarify and facilitate the use of the real estate disclosure statement, as specified in Section 1102.6. The Legislature intended the statement to be used by sellers making disclosures required under this article and by real estate licensees making disclosures required by Section 2079 on the real estate licensee’s portion of the real estate disclosure statement, in transfers subject to this article. In transfers not subject to this article, real estate licensees may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their real estate licensees, to disclose any known fact materially affecting
the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a, and that nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079.
It is also the intent of the Legislature that the delivery of a real estate transfer disclosure statement may not be waived in an “as is” sale, as held in Loughrin v. Superior Court (1993) 15 Cal. App. 4th 1188.
(b)In enacting Chapter 677 of the Statutes of 1996, it was the intent of the Legislature to clarify and facilitate the use of the manufactured home and mobilehome transfer disclosure statement applicable to the resale of a manufactured home or mobilehome pursuant to subdivision (b) of Section 1102. The Legislature intended
the statements to be used by transferors making disclosures required under this article and by real estate licensees making disclosures required by Section 2079 on the real estate licensee’s portion of the disclosure statement and as required by Section 18046 of the Health and Safety Code on the dealer’s portion of the manufactured home and mobilehome transfer disclosure statement, in transfers subject to this article. In transfers not subject to this article, real estate licensees may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their real estate licensees, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a or to affect the existing obligations of the parties to a
manufactured home or mobilehome purchase contract, and nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079 or the duty of a manufactured home or mobilehome dealer or salesperson pursuant to Section 18046 of the Health and Safety Code.
It is also the intent of the Legislature that the delivery of a mobilehome transfer disclosure statement may not be waived in an “as is” sale.
(c)It is the intent of the Legislature that manufactured home and mobilehome dealers and salespersons and real estate brokers and salespersons use the form provided pursuant to Section 1102.6d. It is also the intent of the Legislature for sellers of manufactured homes or mobilehomes who are neither manufactured home dealers or salespersons nor real estate brokers or salespersons to use the Manufactured Home/Mobilehome Transfer Disclosure Statement contained
in Section 1102.6d.
SEC. 8.SEC. 7.
Section 1102.2 of the Civil Code is amended to read:1102.2.
This article does not apply to the following:SEC. 9.SEC. 8.
Section 1102.3 of the Civil Code is amended to read:1102.3.
The seller of any real property subject to this article shall deliver to the prospective buyer the completed written statement required by this article, as follows:(a)Neither the seller nor any listing licensee or buyer’s licensee shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the seller or that listing or buyer’s licensee, was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting it.
(b)The delivery of any information required to be disclosed by
this article to a prospective buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the seller or any listing or buyer’s licensee of any further duty under this article with respect to that item of information.
(c)The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, structural pest control operator, contractor, or other expert, dealing with matters within the scope of the professional’s license or expertise, shall be sufficient compliance for application of the
exemption provided by subdivision (a) if the information is provided to the prospective buyer pursuant to a request therefor, whether written or oral.
SEC. 9.
Section 1102.4 of the Civil Code is amended to read:1102.4.
(a) Neither theSEC. 11.SEC. 10.
Section 1102.5 of the Civil Code is amended to read:1102.5.
If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any act, occurrence, or agreement subsequent to the delivery of the required disclosures, any inaccuracy resulting therefrom does not constitute a violation of this article. If at the time the disclosures are required to be made, an item of information required to be disclosed is unknown or not available to the seller, and the seller or his or herSEC. 12.SEC. 11.
Section 1102.6a of the Civil Code is amended to read:1102.6a.
(a)SEC. 13.SEC. 12.
Section 1102.6b of the Civil Code is amended to read:1102.6b.
(a) This section applies to all sales of real property for which all of the following apply:SEC. 14.SEC. 13.
Section 1102.6c of the Civil Code is amended to read:1102.6c.
(a) In addition to any other disclosure required pursuant to this article, it shall be the sole responsibility of the seller of any real property subject to this article, or his or herSEC. 15.SEC. 14.
Section 1102.9 of the Civil Code is amended to read:1102.9.
Any disclosure made pursuant to this article may be amended in writing by the seller or his or herSEC. 16.SEC. 15.
Section 1102.12 of the Civil Code is amended to read:1102.12.
(a) In a real estate transaction subject to this article, a buyer’sSEC. 17.SEC. 16.
Section 1102.14 of the Civil Code is repealed.SEC. 18.SEC. 17.
Section 1102.155 of the Civil Code is amended to read:1102.155.
(a) (1) The seller of residential real property subject to this article shall disclose, in writing, that Section 1101.4 requires that California single-family residences be equipped with water-conserving plumbing fixtures on or before January 1, 2017, and shall disclose whether the property includes any noncompliant plumbing fixtures as defined in subdivision (c) of Section 1101.3.(a)For purposes of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(b)Except as provided in Section 1103.1, this article applies to a sale, exchange, real property sales contract, as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any real property described in subdivision (d), or residential stock cooperative, improved with or consisting of not less than one nor more than four dwelling units.
(c)Except as provided in Section 1103.1, this article applies to a resale transaction entered into for a manufactured home, as defined in Section 18007 of the Health and Safety Code, that is classified as personal property intended for use as a residence, or a mobilehome, as defined in Section 18008 of the Health and Safety Code, that is classified as personal property intended for use as a residence, if the real property on which the manufactured home or mobilehome is located is real property described in subdivision (d).
(d)This article shall apply to the transactions described in subdivisions (b) and
(c) only if the seller or his or her real estate licensee is required by one or more of the following to disclose the property’s location within a hazard zone:
(1)A person who is acting a real estate licensee for a seller of real property that is located within a special flood hazard area (any type Zone “A” or “V”) designated by the Federal Emergency
Management Agency, or the seller if he or she is acting without a real estate licensee, shall disclose to any prospective buyer the fact that the property is located within a special flood hazard area if either:
(A)The seller, or the seller’s real estate licensee, has actual knowledge that the property is within a special flood hazard area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that
are within the special flood hazard area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(2)A person who is acting as a real estate licensee for a seller of real property that is located within an area of potential flooding designated pursuant to Section 8589.5 of the Government Code, or the seller if he or she is acting without a real estate licensee, shall disclose to any
prospective buyer the fact that the property is located within an area of potential flooding if either:
(A)The seller, or the seller’s real estate licensee, has actual knowledge that the property is within an inundation area.
(B)The local jurisdiction has compiled a list, by parcel, of properties that are within the inundation area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(3)A seller of real property that is located within a very
high fire hazard severity zone, designated pursuant to Section 51178 of the Government Code, shall disclose to any prospective buyer the fact that the property is located within a very high fire hazard severity zone and is subject to the requirements of Section 51182 of the Government Code if either:
(A)The seller or the seller’s real estate licensee, has actual knowledge that the property is within a very high fire hazard severity zone.
(B)A map that includes the property has been provided to the local agency pursuant to Section 51178 of the Government Code and a notice has been posted at
the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the local agency.
(4)A person who is acting as a real estate licensee for a seller of real property that is located within an earthquake fault zone, designated pursuant to Section 2622 of the Public Resources Code, or the seller if he or she is acting without a real estate licensee, shall disclose to any
prospective buyer the fact that the property is located within a delineated earthquake fault zone if either:
(A)The seller, or the seller’s real estate licensee, has actual knowledge that the property is within a delineated earthquake fault zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2622 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(5)A person who is acting as a real estate licensee for a seller of real property that is located within a seismic hazard zone, designated pursuant to Section 2696 of the Public Resources Code, or the seller if he or she is acting without a real estate licensee shall disclose to any prospective buyer the fact that the property is located within a seismic hazard zone if either:
(A)The seller, or the seller’s real estate licensee, has actual knowledge that the property is within a seismic hazard zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 2696 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(6)A seller of real property that is located within a state responsibility area determined by the board, pursuant to Section 4125 of the Public Resources Code, shall disclose to any prospective buyer the fact that the property is located within a wildland area that may contain substantial forest fire risks and hazards
and is subject to the requirements of Section 4291 of the Public Resources Code if either:
(A)The seller, or the seller’s real estate licensee, has actual knowledge that the property is within a wildland fire zone.
(B)A map that includes the property has been provided to the city or county pursuant to Section 4125 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(e)
Any waiver of the requirements of this article is void as against public policy.
SEC. 18.
Section 1103 of the Civil Code is amended to read:1103.
(a)(b)
(c)
(d)
SEC. 20.SEC. 19.
Section 1103.1 of the Civil Code is amended to read:1103.1.
(a) This article does not apply to the following sales:SEC. 21.SEC. 20.
Section 1103.2 of the Civil Code is amended to read:1103.2.
(a) The disclosures required by this article are set forth in, and shall be made on a copy of, the following Natural Hazard Disclosure Statement:NATURAL HAZARD DISCLOSURE STATEMENT | |
This statement applies to the following property: | |
The seller and his or her | |
The following are representations made by the seller and his or her | |
THIS REAL PROPERTY LIES WITHIN THE FOLLOWING HAZARDOUS AREA(S): | |
A SPECIAL FLOOD HAZARD AREA (Any type Zone “A” or “V”) designated by the Federal Emergency Management Agency. | |
Yes ____ No ____ Do not know and _____ information not _____ available from local _____ jurisdiction ____ | |
AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code. | |
Yes ____ No ____ Do not know and _____ information not _____ available from local _____ jurisdiction ____ | |
A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. | |
Yes ____ No ____ | |
A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the state’s responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. | |
Yes ____ No ____ | |
AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. | |
Yes ____ No ____ | |
A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public Resources Code. | |
Yes (Landslide Zone)____________ Yes (Liquefaction Zone) ______ No ____ Map not yet released by state ____ | |
THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER. | |
THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER. SELLER(S) AND BUYER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. |
Signature of Seller(s) | Date |
Signature of Seller(s) | Date |
Seller’s | Date |
Seller’s | Date |
Check only one of the following:
_____
| |
◻ Seller(s) and their | |
_____
| |
◻ Seller(s) and their | |
Third-Party Disclosure Provider(s) | Date |
Buyer represents that he or she has read and understands this document. Pursuant to Civil Code Section 1103.8, the representations made in this Natural Hazard Disclosure Statement do not constitute all of the
seller’s or | |
Signature of Buyer(s) | Date |
Signature of Buyer(s) | Date |
SEC. 22.SEC. 21.
Section 1103.3 of the Civil Code is amended to read:1103.3.
(a) The seller of any real property subject to this article shall deliver to the prospective buyer the written statement required by this article, as follows:SEC. 23.SEC. 22.
Section 1103.4 of the Civil Code is amended to read:1103.4.
(a) Neither the seller nor any listingNOTICE OF AIRPORT IN VICINITY | |
This property is presently located in the vicinity of an airport, within what is known as an airport influence area. For that reason, the property may be subject to some of the annoyances or inconveniences associated with proximity to airport operations (for example: noise, vibration, or odors). Individual sensitivities to those annoyances can vary from person to person. You may wish to consider what airport annoyances, if any, are associated with the property before you complete your purchase and determine whether they are acceptable to you. |
NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION JURISDICTION
SEC. 24.SEC. 23.
Section 1103.5 of the Civil Code is amended to read:1103.5.
(a) After a seller and his or herSEC. 25.SEC. 24.
Section 1103.8 of the Civil Code is amended to read:1103.8.
(a) The specification of items for disclosure in this article does not limit or abridge any obligation for disclosure created by any other provision of law or that may exist in order to avoid fraud, misrepresentation, or deceit in the sale transaction. The Legislature does not intend to affect the existing obligations of the parties to a real estate contract, or theirSEC. 26.SEC. 25.
Section 1103.9 of the Civil Code is amended to read:1103.9.
Any disclosure made pursuant to this article may be amended in writing by the seller or his or herSEC. 27.SEC. 26.
Section 1103.12 of the Civil Code is amended to read:1103.12.
(a) In a real estate transaction subject to this article, a buyer’sSEC. 28.SEC. 27.
Section 1103.14 of the Civil Code is repealed.SEC. 29.SEC. 28.
Section 2079 of the Civil Code is amended to read:2079.
(a) It is the duty of a real estateSEC. 30.SEC. 29.
Section 2079.6 of the Civil Code is amended to read:2079.6.
This article does not apply to sales which are required to be preceded by the furnishing, to a prospective buyer, of a copy of a public report pursuant to Section 11018.1 or Section 11234 of the Business and Professions Code and sales that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code, unless the property has been previously occupied.SEC. 31.SEC. 30.
Section 2079.7 of the Civil Code is amended to read:2079.7.
(a) If a consumer information booklet described in Section 10084.1 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 of the Civil Code, or manufactured housing, as defined in Section 18007 of the Health and Safety Code, a seller orSEC. 32.SEC. 31.
Section 2079.8 of the Civil Code is amended to read:2079.8.
(a) If a Homeowner’s Guide to Earthquake Safety described in Section 10149 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller orSEC. 33.SEC. 32.
Section 2079.9 of the Civil Code is amended to read:2079.9.
(a) If a Commercial Property Owner’s Guide to Earthquake Safety described in Section 10147 of the Business and Professions Code is delivered to a buyer in connection with the sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller orSEC. 34.SEC. 33.
Section 2079.10 of the Civil Code is amended to read:2079.10.
(a) If the informational booklet published pursuant to Section 25402.9 of the Public Resources Code, concerning the statewide home energy rating program adopted pursuant to Section 25942 of the Public Resources Code, is delivered to a buyer in connection with the sale of real property, including, but not limited to, property specified in Section 1102, manufactured homes as defined in Section 18007 of the Health and Safety Code, and property subject to Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, the seller orSEC. 35.SEC. 34.
Section 2079.10.5 of the Civil Code is amended to read:2079.10.5.
(a) Every contract for the sale of residential real property entered into on or after July 1, 2013, shall contain, in not less than 8-point type, a notice as specified below:SEC. 36.SEC. 35.
Section 2079.10a of the Civil Code is amended to read:2079.10a.
(a) Every lease or rental agreement for residential real property entered into on or after July 1, 1999, and every contract for the sale of residential real property comprised of one to four dwelling units entered into on or after that date, shall contain, in not less than 8-point type, a notice as specified in paragraph (1), (2), or (3).(a)For purposes of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(b)Notwithstanding subdivision (a), for the purposes of Sections 2079 to 2079.6, inclusive, and Sections 2079.9 to 2079.24, inclusive, owners and managers of multifamily residential properties improved by more than four residential units are not “sellers” and a lease of that property does not constitute a “sale.”
SEC. 36.
Section 2079.13 of the Civil Code is amended to read:2079.13.
As used in Sections 2079.7 and 2079.14 to 2079.24, inclusive, the following terms have the following meanings:(p)“Subagent” means a person to whom an agent delegates agency powers as provided in Article 5 (commencing with Section 2349) of Chapter 1 of Title 9. However, “subagent” does not include an associate licensee who is acting under the
supervision of an agent in a real property transaction.
SEC. 39.SEC. 37.
Section 2079.14 of the Civil Code is amended to read:2079.14.
SEC. 40.SEC. 38.
Section 2079.15 of the Civil Code is amended to read:2079.15.
In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the real estateThe disclosure form required by Section 2079.14 shall contain at a minimum the following:
DISCLOSURE REGARDING
REAL ESTATE AGENCY RELATIONSHIP WITH LICENSEES
(As required by Section 2079.14 of the Civil Code)
When you enter into a relationship with a real estate licensee regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the licensee in the transaction.
SELLER’S
LICENSEE
A Seller’s licensee under a listing agreement with the Seller acts as the licensee for the Seller only. A Seller’s licensee has the following affirmative obligations:
To the Seller:
A fiduciary duty of care, integrity, honesty, and loyalty in dealings with the Seller.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the licensee’s duties.
(b)A duty of honest and fair dealing and good faith.
(c)A duty to disclose all facts known to the licensee materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.
A Seller’s licensee may have other listing agreements with other Sellers. The affirmative duties to the Buyer and Seller set forth above in (a), (b) and (c) do not obligate a licensee to reveal to either party any confidential information obtained from the other party or from other clients. Confidential information includes, but is not limited to, facts relating to the party’s financial position, motivations, bargaining position, or other personal information that may impact price, such as that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.
BUYER’S LICENSEE
The Buyer’s licensee may also be providing services to other Buyers in regard to the same or different properties. A licensee can, with the Buyer’s agreement, agree to act as licensee for the Buyer and not the Seller. The Buyer’s licensee may receive compensation for services rendered, either in full or in part from the Seller, but that does not make the Buyer’s licensee the Seller’s licensee. A licensee acting for a Buyer has the following affirmative obligations:
To the Buyer:
A fiduciary duty of care, integrity, honesty, and loyalty in dealings with the Buyer.
To the Buyer and the Seller:
(a)Diligent exercise of reasonable skill and care in performance of the licensee’s duties.
(b)A duty of honest and fair dealing and good faith.
(c)A
duty to disclose all facts known to the real estate licensee materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.
The affirmative duties to the Buyer and Seller set forth above in (a), (b) and (c) do not obligate a licensee to reveal to either party any confidential information obtained from the other party or from other clients. Confidential information includes, but is not limited to, facts relating to the party’s financial position, motivations, bargaining position, or other personal information that may impact price, such as that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.
LICENSEE REPRESENTING BOTH SELLER AND BUYER
A real estate licensee, either acting directly or through one or more
associate licensees, can legally represent both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.
In a dual broker or dual licensee situation, the dual broker and dual licensee have the following affirmative obligations to both the Seller and the Buyer:
(a)A fiduciary duty of care, integrity, honesty and loyalty in the dealings with either the Seller or the Buyer.
(b)Other duties to the Seller and the Buyer as stated above in their respective sections.
In representing both Seller and Buyer, the dual broker or dual licensee may not, without the express permission of the respective party, disclose to the other party in that transaction any confidential information obtained from the other party that does not involve the affirmative
duties set forth above in (a) and (b). Confidential information includes, but is not limited to, facts relating to the party’s financial position, motivations, bargaining position, or other personal information that may impact price such as the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.
CONSUMER RESPONSIBILITY
Once you have decided on the offer you wish to make or accept, you will receive a confirmation of the licensee relationship. Please pay attention to that confirmation to make sure you are comfortable with that relationship and it reflects your understanding of it.
The above duties of the licensee in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests including reading all documents, reports, and disclosures. The Buyer has a duty
to exercise reasonable care to protect himself or herself including obtaining and considering those facts which are known to or within the diligent attention and observation of the Buyer. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate licensee is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.
Real Estate Broker(date) | Buyer/Seller(date) |
(Signature) | |
Salesperson or Broker Associate(date) | Buyer/Seller(date) |
(Signature) | (Signature) |
SEC. 42.SEC. 39.
Section 2079.17 of the Civil Code is amended to read:2079.17.
(a) As soon as practicable, the buyer’s (Name of Seller’s Broker, Brokerage firm and license number)
_____
is the broker of (check one): | |
[ ]the seller; or | |
[ ]both the buyer and seller. (dual broker) | |
(Name of Seller’s is (check one): | |
[ ]is the Seller’s | |
[ ]is both the Buyer’s and Seller’s | |
_____
(Name of Buyer’s Broker, Brokerage firm and license number)
_____
is the broker of (check one): | |
[ ]the buyer; or | |
[ ]both the buyer and seller. (dual broker) | |
(Name of Buyer’s is (check one): | |
[ ]the Buyer’s | |
[ ]both the Buyer’s and Seller’s |
SEC. 43.SEC. 40.
Section 2079.18 of the Civil Code is repealed.The payment of compensation or the obligation to pay compensation to a real estate licensee by the seller or buyer is not necessarily determinative of a particular agency relationship between a real estate licensee and the seller or buyer. Buyers and sellers may have a relationship with a real estate licensee established and governed by a written agreement or an agreement for services for licensed activity without an agency relationship. A seller’s licensee and a buyer’s licensee may agree to share any compensation or commission paid, or any right to any compensation or commission for which an obligation arises as the result of a real estate transaction, and the terms of any such agreement shall not necessarily be determinative of a particular relationship.
Nothing in this article prevents a licensee from selecting a specific form of agency relationship not specifically prohibited by this article if the requirements of Section 2079.14 and Section 2079.17 are complied with.
A dual licensee may not, without the express permission of a client, disclose to the other client any confidential information obtained from the other client that does not involve the affirmative duties set forth above. Confidential information includes, but is not limited to, facts relating to the client’s financial position, motivations, bargaining position, or other personal information that may impact price such as the Seller will accept a price less than the listing price or that the buyer will pay a price greater than the price offered.
SEC. 41.
Section 2079.21 of the Civil Code is amended to read:A dual agent shall not disclose to the buyer that the seller is willing to sell the property at a price less than the listing price, without the express written consent of the seller. A dual agent shall not disclose to the seller that the buyer is willing to pay a price greater than the offering price, without the express written consent of the buyer.
2079.21.
(a) A dual agent may not, without the express permission of the seller, disclose to the buyer any confidential information obtained from the seller. This
SEC. 48.SEC. 42.
Section 2079.22 of the Civil Code is amended to read:2079.22.
Nothing in this article precludes a seller’s(a)A contract between the principal and real estate licensee may be modified or altered to change the relationship at any time before the performance of the act which is the object of the licensee services with the written consent of the parties to the relationship.
(b)A lender or an auction company retained by a lender to control aspects of a transaction of real property subject to this part, including validating the sales price, shall not require, as a condition of receiving the lender’s approval of the transaction, the homeowner or any licensee to defend or indemnify the lender or auction company from any liability alleged to result from the actions of the lender or auction company. Any clause, provision, covenant, or agreement purporting to impose an
obligation to defend or indemnify a lender or an auction company in violation of this subdivision is against public policy, void, and unenforceable.
Nothing in this article shall be construed to either diminish the duty of disclosure owed to buyers and sellers by licensees including their broker associates, salespersons, and employees or to relieve licensees, including their broker associates, salespersons, and employees from liability for their conduct in connection with acts governed by this article or for any breach of a fiduciary duty or a duty of disclosure.