• Understanding the
 Process
ALL ACCESS PASS
• Login
• Register
• About



Step 4: Closing the Transaction

Disclosures
Home sellers and real estate agents have stringent legal disclosure requirements. For-sale-by-owner transactions have the exact same standards. If you are buying or selling a home you must receive/deliver the following disclosures or you may be violating State law:

California Law Overview (Residential property 1-4 units).

Form Issues Covered
Agency Prior to a buyer submitting an offer to buy, or a seller signing a listing agreement to sell, an agency disclosure describing the role and duty of the brokers must be signed.
Sellers Advisory (Form SA-11) Introduction to obligations to disclose all known facts that materially affect the value or desirability of your property:

  • Death - The transferor/agent has no liability for not disclosing the fact of any death which has occurred more than 3 years prior to the date of offer. Any death which has occurred within a 3-year period should be disclosed if deemed to be “material.” Affliction with AIDS or death from AIDS, no mater when it occurred, need not be voluntarily disclosed. However, neither a seller nor agent may make an intentional misrepresentation in response to a direct question concerning deaths on the property.
  • Condo/Townhome subdivision governing documents and most recent financial statements must be given to buyer
Transfer Disclosure Statement
  • Home contents
  • Malfunctions
  • Other issues including zoning, flooding, non-permitted areas, settling problems, etc.
  • Actual knowledge or suspicion of toxic mold onsite
  • Material facts or circumstance that might affect a reasonable buyer's decision whether to purchase the property
  • Agent visual inspection of accessible areas signature (sellers agent)
Water Heater Compliance(Form WHS-11) Seller certifies all water heaters be braced, anchored, or strapped to resist falling due to earthquake
Smoke Detector Compliance(Form SDS-11) Seller represents that as of close of escrow home will be in compliance with local and state laws covering installation and operation of smoke detectors.
Lead Based Paint – Pre 1978 structures only Must disclose knowledge of lead-based paint in home.
Residential Earthquake Hazards Report Must deliver the book titled “Environmental Hazards and Earthquake Safety” by the California Association of Realtors AND fill out questionaire. Buyer and Seller must sign acknowledgement and receipt of both.
Natural Hazards Disclosure-(Flood/ Seismic Zone/etc) Disclosed via Seller paid report ($40) in most sales. Form NHD
Mello-Roos District or Bond Assessment Seller must disclose special taxes or assessments. CataList Homes recommends expert report from California Tax ID ($40) to satisfy this requirement.

The laws are constantly changing so be sure and speak with a CataList Agent prior to selling your home.