Article 1.7Disclosure of Natural and Environmental Hazards, Right-to-Farm, and Other Disclosures Upon Transfer of Residential Property
Section § 1103
This law states that when selling or leasing a single-family home, the seller or their agent must inform the buyer if the property is in a hazardous area, like a flood zone, fire zone, earthquake fault zone, or seismic hazard area. Disclosures are required if the seller knows about it, or if the property is listed on local jurisdiction hazard maps. Such areas might be prone to floods, fires, or earthquakes. Sellers can't skip these disclosures because it’s against public policy.
Section § 1103.1
This section specifies the types of property sales and transfers that are not subject to certain requirements, possibly related to disclosures. These exceptions include sales due to court orders, mortgage defaults, foreclosures, and sales between co-owners or family members. Sales by fiduciaries during estate administration, transfers between spouses due to marital dissolution, and transactions involving government entities or leases without purchase options are also exempt. However, other disclosure rules might still apply to these transactions. Lastly, this section clarifies that terms like “sale” and “transfer” should be understood in their usual context, and recent legislative changes do not alter the law’s application before 2019.
Section § 1103.10
This law states that if you need to send disclosures (important documents) related to a property transfer, you can either hand them directly to the person getting the property or mail them to them. Additionally, giving these documents to the person's spouse counts as delivering them, unless a contract specifically says something different.
Section § 1103.11
If someone is acting as an escrow agent in a real estate deal and they are not a licensed real estate agent, they are not automatically considered the agent for the buyer or seller in terms of required disclosures unless there is a specific written agreement stating so. Such an agreement will determine what they are allowed to do.
Section § 1103.12
If there are multiple real estate brokers involved in a property sale, the broker who receives the buyer's offer is usually the one responsible for giving the required disclosure documents to the buyer unless the seller has given other instructions. If that broker can't get the disclosure document and doesn't have proof that the buyer received it, they must inform the buyer in writing about their right to get the disclosure. Also, the broker must keep records of how they tried to comply with the disclosure rules.
Section § 1103.13
This law says that even if someone doesn't follow the rules in this article, it won't automatically make a property transfer invalid. However, if someone purposely or carelessly breaks the rules or doesn't do what they're supposed to, they can be responsible for any real damages the new owner suffers because of it.
Section § 1103.15
This law states that a specific set of rules from another section, specifically subdivision (d) of Section 1102.1, also applies to this article. It's essentially saying that whatever rules or conditions are in that part of Section 1102.1 are relevant here too.
Section § 1103.2
This law requires that sellers of real estate in California provide a Natural Hazard Disclosure Statement to buyers, revealing if the property is in an area prone to natural disasters like floods, wildfires, or earthquakes. The disclosure includes checks on whether the property lies in areas like flood zones, fire hazard zones, or earthquake fault zones. Sellers and their agents provide this information to help buyers understand potential risks but these disclosures aren't a guarantee or a part of the contract. If the property is removed from a hazard zone by FEMA, this should be noted, and a confirming letter should be attached. The information is strictly between the seller and buyer and isn't meant for use by others like insurance companies. The statement can also be included in other approved real estate disclosure documents if it covers the same information and warnings.
HAZARDOUS AREA(S):
_____ information not
_____ available from local
_____ jurisdiction ____
_____ information not
_____ available from local
_____ jurisdiction ____
Resources Code.
Section § 1103.3
Section § 1103.4
This law basically says that if a seller, or their agents, provide incorrect or missing information about a property and they didn't personally know about this mistake, they aren't responsible for it as long as they were careful and got the information from a reliable source, like public agencies. If the information is given by an official agency or an expert, it counts as being properly disclosed. Experts are responsible for checking if a property is near an airport, under the influence of environmental commissions like the San Francisco Bay Conservation and Development Commission, close to designated farmland, or close to a mining operation. These experts then provide specific notices about potential issues these locations might cause, such as noise from an airport or agricultural practices. It's important for buyers to understand these potential downsides and check if they're okay with them before buying the property.
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
Section § 1103.5
Once a seller and the seller's agent give the required property information to a buyer, they don't have to update the buyer if this information changes because of new government actions, updated maps, or other events, unless they know the information is wrong.
If the information was correct when it was given but later becomes wrong due to these changes, it doesn't count as breaking the rules.
Section § 1103.7
This law section emphasizes that any required disclosures must be made honestly and truthfully. "Good faith" is essentially about being genuinely honest during the transaction process.
Section § 1103.8
Section § 1103.9
In California, sellers or their agents can update the information they've shared about a property in a written form. However, any changes they make must follow the rules outlined in another section, specifically Section 1103.3.