Dealing with construction defects? New law effective in July.

New Transfer Disclosure Statement - Construction Defect Claims

Effective July 1, 2014, the Real Estate Transfer Disclosure Statement (TDS) has been revised to require disclosure of whether a seller is aware of certain construction defect claims under SB 800 (Cal. Civil Code §§ 895, et seq.) as specified. The TDS is generally a required disclosure for sales transactions involving one-to-four residential units (with certain exemptions).

To view a PDF copy of the TDS that will become effect on July 1, 2014, please click here: www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0651-0700/sb_652_bill_20130930_chaptered.pdf.

Under the new law, the revised TDS will inquire, in question 16 of Section 11C, as to whether a seller is aware of any of the following claims threatening to or affecting the real property: 

(1) claims for damages by the seller based on construction defects (under Cal. Civil Code §§ 910 and 914); 

(2) claims for breach of warranty (under Cal. Civil Code § 900); or 

(3) claims for breach of an enhanced protection agreement (under Cal. Civil Code § 903), including any lawsuits or claims for damages under sections 910 or 914 alleging a defect or deficiency in the real property or common areas. 

If any of these claims threatening to or affecting the real property have occurred, the seller must provide further explanation in the TDS. While the TDS does not create a warranty between the buyer and the seller, the buyer can rely on the disclosures in determining whether to purchase the property and a lack of disclosure may create liability for the seller.

Esquire Real Estate can help you with any questions you may have regarding the new TDS.

Things to Consider Before Buying Your Dream Home

Always check with the right professionals, including a geotechnical engineer, before buying your dream home on a hillside.  The Esquire Real Estate team can help.

Happy New Year - 2014

Happy 2014 and Welcome to the Esquire "Hot off the Press" Real Estate blog!

This blog will provide you with relevant, important information relative to owning, buying, selling, leasing, and improving real estate in California. Please remember Esquire Real Estate for all of your real estate transaction needs.

Did you know that more than 800 new California laws went into effect on January 1, 2014? Did you know that many of these new laws affect California real estate? Regardless of the pros or cons of these new laws or the sheer number of new laws, you as a California buyer, seller, lessor, lessee, or owner of California real estate must be aware of these changes.

Effective January 1, 2014, a master-meter customer of an apartment building, mobilehome park, or similar residential complex, must post in a conspicuous place the applicable specific current residential gas or electrical rate schedule as published by the serving utility, rather than the prevailing residential utilities rate schedule as previously required. Alternatively, the master-meter customer may elect to post the website address for a tenant to access the schedule as long as the master-meter customer also does the following: (1) state in the posting that an individual user may request a copy of the specific current residential gas or electrical rate schedule from the master-meter customer; and (2) provide the schedule upon request at no cost. See Public Utilities Code § 739.5(e). See the analysis by the California Apartment Association shortly before the governor signed the bill: http://www.caanet.org/news_events/brown-could-flip-off-switch-on-utility-rate-posting-requirement/.

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Coming next posting: If you are planning to sell your home in 2014, a new law will require further disclosures in the Transfer Disclosure Statement. Check back next time for further details.