If you are a buyer or a seller of residential real estate today, disclosures are extraordinarily important. One document that the seller must give the buyer is called the Transfer Disclosure Statement (C.A.R. form TDS). It is always unfortunate when sellers fill out disclosure forms, they want to get it over with and they rush through it. Sellers should be advised that they should take the time to carefully and thoughtfully disclose any and all defects of their home. It is understandable that sellers want to put a happy face on their home, but this is the time to be brutally honest and that means even if it affects the value. Most lawsuits between the sellers and the buyers can usually be traced to what wasn’t disclosed. There is an adage in the real estate industry- when in doubt about if something should be disclosed- DISCLOSE! In the California Residential Purchase Agreement (C.A.R. form RPA-CA) paragraph 9 it states that the seller is selling the home in its present physical “as is” condition. Sellers mistakenly think that means it is up to the buyer to make their own discoveries- you get what you see. Most buyers will have the property inspected by a professional inspector, but that does not relieve the seller from disclosing known material facts and defects.

What if the seller knows that the city is planning to widen the street in front of the subject property? That is a material fact. It needs to be disclosed. If you are a buyer, it would be wise when making an offer, you also include in the purchase offer that the sellers also provide a Seller Property Questionnaire (C.A.R. form SPQ). The TDS is required by law and the SPQ is not; however the SPQ will provide much more information on top of the TDS. So Sellers spend some quality time making your disclosures. It will go a long way in helping you avoid lawsuits. And Buyers, don’t gloss over seller disclosures. Read them carefully and ask questions.

Carbon Monoxide Detectors. Carbon Monoxide is a gas produced whenever any fuel, such as gas, oil, kerosene, wood, or charcoal is burned. A person cannot see or smell carbon monoxide. There is now a California law dealing with the issue of carbon monoxide poisoning. The law requires carbon monoxide detectors to be installed in every dwelling unit intended for occupancy. The Real Estate Transfer Disclosure Statement (C.A.R. form TDS) under section 2 now gives the seller the opportunity to state if carbon monoxide detectors are presently installed in the dwelling. Buyers need  to be aware of whether there are detectors or not. As of July 1, 2011 the law requires that all existing single-family dwelling have carbon monoxide detectors installed. For all other existing dwellings (Condominiums etc) carbon monoxide detectors must be installed on or before January 1, 2013. How many detectors should be installed varies. At a minimum detectors should be installed outside each bedroom. There are penalties for noncompliance, but the property owner must first receive a 30 day notice to correct. Buyers may consider making it a condition of the sale that the sellers are required to install carbon monoxide detectors. But even if they don’t they are advised to follow the law and install them at their own expense. They are not expensive and in most cases very easy to install. By not installing them the result can be fatal to themselves or to a family member. The best advice to anyone owning a dwelling that is occupied by humans is to make sure that carbon monoxide detectors are installed and working properly, even before the law states you have too. They will a save life.

California Real Estate Forms (PDF)