Chapter 5: Real Property Disclosures and Advisories Flashcards
What is the importance of the Disclosure Information Advisory (DIA) form to sellers?
CAR® has created this form to give to sellers prior to
completing the required disclosure forms.
Also The DIA advises sellers of the importance of disclosing
what they know affecting the value and desirability of
the property, and taking the time to be thorough and
complete when making required statutory and
contractual disclosures.
What information does the Statewide Buyer and Seller Advisory (SBSA) cover?
- Buyer’s Rights and Duties
- Seller’s Rights and Duties
- Broker Rights and Duties
- Investigation of Physical Conditions
- Property Use and Ownership
- Off-Site and Neighborhood Conditions
- Legal Requirements
- Contract Related Issues and Terms
- Other Factors Affecting Property
- Local Disclosures and Advisories
ADVISABILITY OF TITLE INSURANCE DISCLOSURE
Summary of Disclosures; this is not all of them
required in a escrow transaction for the
purchase/exchange of real property where a policy
of title insurance will NOT be issued to the buyer
AGENCY DISCLOSURE (AD)
Summary of Disclosures; this is not all of them
a requirement that agents who act for both buyers or sellers must
disclose who they are working for
AIRPORT IN VICINITY (NHD)
Summary of Disclosures; this is not all of them
a NHD expert must determine if the property if located within an
“airport influence area”
BROKER’S STATUTORY DUTY TO INSPECT
PROPERTY (AVID)
Summary of Disclosures; this is not all of them
1 to 4 units, a real estate licensee
must conduct a reasonably competent and diligent
visual inspection of the property
CARBON MONOXIDE DETECTOR DISCLOSURE
AND COMPLIANCE DISCLOSURE
requires a carbon monoxide
detector device (battery or hard-wired) to be
installed in all dwelling units
COMMERICAL PROPERTY OWNER’S GUIDE TO
EARTHQUAKE SAFETY DISCLOSURE
mandatory delivery in the sale, transfer, or exchange of any real property,
manufactured home or mobile home located within a
county or city
DISCLOSURE OF DEATH (IN LAST 3 YEARS)
any death which has occurred within a 3-year period should be
disclosed if deemed to be “material”
FARM OR RANCH PROXIMITY DISCLOSURE (NHD)
a NHD expert must determine if the property is located
within one mile of real property designated as farm
or ranch land on a Geographic Information
System (GIS)map*
FHA/HUD INSPECTION NOTICE DISCLOSURE
-sale of HUD-owned residential real property of 1 to 4 units or
properties which involve FHA loans
FEDERAL WITHHOLDING (FIRPTA) and
CALFORNIA WITHHOLDING TAX
- Federal Withholding – for all sales to a “foreign person” buyers
must withhold 10% of the gross sales price and send it to the IRS - California Withholding – buyers must withhold 3 1/3 % of the
gross sales price on any sale of real property interests and send it to the FTB
.FLOOD DISASTER INSURANCE REQUIREMENTS DISCLOSURE
on any transfer of personal, residential or
commercial property where the owner received
federal flood disaster assistance conditioned on the
owner subsequently obtaining and maintain flood
insurance
GAS AND HAZARDOUS LIQUID TRANSMISSION
PIPELINE NOTICE
required of every contract for
sale of real property, this notice informs the buyer
that information about the general location of these
pipelines is available
GROUNDWATER BASIN COMPREHENSIVE
ADJUDICATION NOTICE
it is advisable to use
this notice and disclose it as a material fact
HOME ENERGY RATING SYSTEM (HERS)
BOOKLET
an optional disclosure which can be
delivered to the transferee
HOMEOWNER’S GUIDE TO EARTHQUAKE
SAFETY BOOKLET
any structural deficiencies must be disclosed plus this booklet given to the
transferee from the transferor
INDUSTRIAL USE ZONE LOCATION
the seller of real property must disclose “actual knowledge”
that the property is affected by or zoned to allow an
industrial use of property as soon as possible before
transfer of title
LEAD-BASED PAINT PAMPHLET
the
seller/lessor must provide the buyer/lessee with a
lead hazard information pamphlet and disclose any
knowledge of lead-based paint to the buyer/lessee
MATERIAL FACTS
a seller or real estate agent involved in the transaction of real property must
disclose any known material facts that affect the
value or desirability of the property
MEGAN’S LAW DISCLOSURE
every lease or rental agreement and every sales contract is required to give notice of the existence of public access to database information
regarding sex offenders
MELLO-ROOS, 1915 BOND ACT ASSESSEMENTS, AND VOLUNTARY
CONTRACTUAL ASSESSMENT
the transferor must make a good faith effort to obtain a disclosure notice
concerning the special tax or assessment for each local agency
that levies a special tax or assessment and deliver this notice
to the prospective transferee
METH LAB CLEAN-UP ORDER DISCLOSURE
in the event that toxic contamination by an illegal controlled
substance has occurred on a property and upon
receipt of a clean-up order from the Department of
Toxic Substances Control
MILITARY ORDNANCE LOCATION DISCLOSURE
–disclosure is required when the transferor has actual knowledge
that a former military ordnance location is within
one mile of the property
