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
Senate
June 19, 2018 |
Amended
IN
Senate
May 15, 2018 |
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.
(a) 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.(b)“Agent” means a person acting under provisions of Title 9 (commencing with Section 2295) of Part 4 of Division 3 in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is
executed or an offer to purchase is obtained.
SEC. 2.
Section 1087 of the Civil Code is amended to read:1087.
A multiple listing service (MLS) is a facility of cooperation of agents and appraisers, operating through an intermediary that does not itself act as an agent or appraiser, through which agents establish express or implied contracts for compensation between real estate brokers that are MLS participants in accordance with its MLS rules with respect to listed properties in a listing agreement, or that may be used by agents and appraisers, pursuant to the rules of the service, to prepare market evaluations and appraisals of real property.SEC. 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Section 1089 of the Civil Code is repealed.SEC. 5.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 listing agent from also being the buyer’s agent.SEC. 6.
Section 1090.1 is added to the Civil Code, to read:1090.1.
Nothing in Assembly Bill 1289 of the 2017–2018 Regular Session or in Assembly Bill 2884 of the 2017–18 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciary’s responsibilities and obligations to disclose information relative to a real estate transaction pursuant to this article, Article 1.5 (commencing with Section 1102) of Chapter 2, or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3.SEC. 6. SEC. 7.
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.SEC. 7. SEC. 8.
Section 1102.2 of the Civil Code is amended to read:1102.2.
This article does not apply to the following:SEC. 8. SEC. 9.
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:SEC. 9. SEC. 10.
Section 1102.4 of the Civil Code is amended to read:1102.4.
(a) Neither the seller nor any listing agent or buyer’s agent 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 agent, 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.SEC. 10. SEC. 11.
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 her agent has made a reasonable effort to ascertain it, the seller may use an approximation of the information, provided the approximation is clearly identified as such, is reasonable, is based on the best information reasonably available to the seller or his or her agent, and is not used for the purpose of circumventing or evading this article.SEC. 11. SEC. 12.
Section 1102.6a of the Civil Code is amended to read:1102.6a.
(a) On and after July 1, 1990, any city or county may elect to require disclosures on the form set forth in subdivision (b) in addition to those disclosures required by Section 1102.6. However, this section does not affect or limit the authority of a city or county to require disclosures on a different disclosure form in connection with transactions subject to this article pursuant to an ordinance adopted prior to July 1, 1990. An ordinance like this adopted prior to July 1, 1990, may be amended thereafter to revise the disclosure requirements of the ordinance, in the discretion of the city council or county board of supervisors.SEC. 12. SEC. 13.
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. 13. SEC. 14.
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 her agent, to deliver to the prospective buyer a disclosure notice that includes both of the following:SEC. 14. SEC. 15.
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 her agent, but the amendment shall be subject to Section 1102.3 or 1102.3a.SEC. 15. SEC. 16.
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’s agent or a dual agent shall, except as otherwise provided in this article, deliver the disclosure required by this article to the buyer, unless the seller has given other written instructions for delivery. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.SEC. 16. SEC. 17.
Section 1102.14 of the Civil Code is repealed.SEC. 17. SEC. 18.
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.SEC. 19.
Section 1102.18 is added to the Civil Code, to read:1102.18.
Nothing in Assembly Bill 1289 of the 2017–2018 Regular Session or in Assembly Bill 2884 of the 2017–18 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciary’s responsibilities and obligations to disclose information relative to a real estate transaction pursuant to Article 6 (commencing with Section 1086) of Chapter 1, Article 1.5 (commencing with Section 1102), or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3.SEC. 18. SEC. 20.
Section 1103 of the Civil Code is amended to read:1103.
(a) For purpose 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.SEC. 19. SEC. 21.
Section 1103.1 of the Civil Code is amended to read:1103.1.
(a) This article does not apply to the following sales:SEC. 20. SEC. 22.
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 | |
The following
are representations made by the seller and | |
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 Agent(s) | Date |
Seller’s Agent(s) | Date |
Check only one of the following:
_____
| |
◻ Seller(s) and their agent(s) represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s) and agent(s). | |
_____
| |
◻ Seller(s) and their agent(s) acknowledge that they have exercised good faith in the selection of a third-party report provider as required in Section 1103.7 of the Civil | |
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 agent’s disclosure obligations in this transaction. | |
Signature of Buyer(s) | Date |
Signature of Buyer(s) | Date |
SEC. 21. SEC. 23.
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. 22. SEC. 24.
Section 1103.4 of the Civil Code is amended to read:1103.4.
(a) Neither the seller nor any listing agent or buyer’s agent 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 the listing agent or selling buyer’s agent and 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 the information.NOTICE 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. 23. SEC. 25.
Section 1103.5 of the Civil Code is amended to read:1103.5.
(a) After a seller and his or her agent comply with Section 1103.2, they shall be relieved of further duty under this article with respect to those items of information. The seller andSEC. 24. SEC. 26.
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 their agents, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical condition of the property and previously received reports of physical inspection noted on the disclosure form provided pursuant to Section 1102.6 or 1102.6a.SEC. 25. SEC. 27.
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 orSEC. 26. SEC. 28.
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’s broker or a dual broker shall, except as otherwise provided in this article, deliver the disclosure required by this article to the buyer, unless the seller has given other written instructions for delivery. If there is only one real estate broker in a transaction subject to this article, that real estate broker shall deliver the disclosure required by this article to the buyer. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.SEC. 27. SEC. 29.
Section 1103.14 of the Civil Code is repealed.SEC. 30.
Section 1103.15 is added to the Civil Code, to read:1103.15.
Nothing in Assembly Bill 1289 of the 2017–2018 Regular Session or in Assembly Bill 2884 of the 2017–18 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciary’s responsibilities and obligations to disclose information relative to a real estate transaction pursuant to Article 6 (commencing with Section 1086) of Chapter 1, Article 1.5 (commencing with Section 1102), or Article 2 (commencing with Section 2079) of Chapter 3 of Title 6 of Part 4 of Division 3.SEC. 28. SEC. 31.
Section 2079 of the Civil Code is amended to read:2079.
(a) It is the duty of a real estate broker or salesperson, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to a prospective buyer of residential real property comprising one to four dwelling units, or a manufactured home as defined in Section 18007 of the Health and Safety Code, to conduct a reasonably competent and diligent visual inspection of the property offered for sale and to disclose to that prospective buyer all facts materially affecting the value or desirability of the property that an investigation would reveal, if that broker has a written contract with the seller to find or obtain a buyer or is a broker who acts in cooperation with that broker to find and obtain a buyer.SEC. 29. SEC. 32.
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. 30. SEC. 33.
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 or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, common environmental hazards, as described in the booklet, that can affect real property.SEC. 31. SEC. 34.
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 or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.SEC. 32. SEC. 35.
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 or broker is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the buyer or seller might consider.SEC. 33. SEC. 36.
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 or broker is not required to provide information additional to that contained in the booklet concerning home energy ratings, and the information in the booklet shall be deemed to be adequate to inform the buyer about the existence of a statewide home energy rating program.SEC. 34. SEC. 37.
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. 35. SEC. 38.
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).SEC. 36. SEC. 39.
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:SEC. 37. SEC. 40.
Section 2079.14 of the Civil Code is amended to read:2079.14.
Listing agents and buyer’s agents shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and shall obtain a signed acknowledgment of receipt from that seller or buyer, except as provided in Section 2079.15, as follows:SEC. 38. SEC. 41.
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 estate agent shall set forth, sign, and date a written declaration of the facts of the refusal.SEC. 39. SEC. 42.
Section 2079.16 of the Civil Code is amended to read:2079.16.
The disclosure form required by Section 2079.14 shall have Sections 2079.13 to 2079.24, inclusive, excluding this section, printed on the back, and on the front of the disclosure form the following shall appear:DISCLOSURE REGARDING
REAL ESTATE AGENCY RELATIONSHIP
(As required by the Civil Code)
SELLER’S AGENT
To the Seller:
To the Buyer and the Seller:
BUYER’S AGENT
To the Buyer:
To the Buyer and the Seller:
AGENT REPRESENTING BOTH SELLER AND BUYER
SELLER AND BUYER RESPONSIBILITIES
Agent(date) | Buyer/Seller(date) |
(Signature) | |
Associate Licensee(date) | Buyer/Seller(date) |
(Signature) | (Signature) |
SEC. 40. SEC. 43.
Section 2079.17 of the Civil Code is amended to read:2079.17.
(a) As soon as practicable, the buyer’s agent shall disclose to the buyer and seller whether the agent is acting in the real property transaction as the buyer’s agent, or as a dual agent representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the buyer’s agent prior to or coincident with execution of that contract by the buyer and the seller, respectively. (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 Agent and license number)
_____
is (check one): | |
[ ]is the Seller’s Agent. (salesperson or broker associate) | |
[ ]is both the Buyer’s and Seller’s Agent. (dual agent) | |
_____
(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 Agent and license number)
_____
is (check one): | |
[ ]the Buyer’s Agent. (salesperson or broker associate) | |
[ ]both the Buyer’s and
Seller’s Agent. (dual agent) |
SEC. 41. SEC. 44.
Section 2079.18 of the Civil Code is repealed.SEC. 42. SEC. 45.
Section 2079.21 of the Civil Code is amended to read: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.SEC. 43. SEC. 46.
Section 2079.22 of the Civil Code is amended to read:2079.22.
Nothing in this article precludes a seller’s agent from also being a buyer’s agent. If a seller or buyer in a transaction chooses to not be represented by an agent, that does not, of itself, make that agent a dual agent.Nothing in this act nor in Assembly Bill 749 of the 2017–18 Regular Session shall be construed to affect any agency relationships in a real estate transaction or a fiduciary’s responsibilities and obligations to disclose information relative to a real estate transaction pursuant to Article 6 (commencing with Section 1086) of Chapter 1 of Title 4 of Part 4 of Division 2 of, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of, or Article 2 (commencing with Section 2079) of Chapter 3 of
Title 6 of Part 4 of Division 3 of, the Civil
Code.