A California residential purchase and sale agreement is a contract between an individual/entity selling a property and the individual/entity intent on purchasing said property. The parties, buyer and seller, will settle the terms of this agreement to arrive at a mutually beneficial arrangement. A price will be set by the seller (and perhaps negotiated by the buyer) and a closing date for the sale will be implemented. A purchase and sale agreement will also contain covenants and provisions covering everything from financing options and earnest money to property condition and inspections. It is the seller’s duty, by law, to include a disclosure notifying the buyer of any issues concerning the state of the property.
Table of Contents
Required Disclosures
If a buyer should not receive any of the disclosures listed below, they may have 3 days to terminate their agreement (or 5 days from the date of mailing) by delivering notice to the seller or seller’s agent (CC § 1102.3).
Environmental Hazards Pamphlet (CC § 2079.7) – A copy must be given to the buyer.
Homeowner’s Guide to Earthquake Safety (CC § 2079.8, CC § 2079.9) – Required to be given to the buyer.
Lead-Based Paint Disclosure – Must accompany any purchase agreement pertaining to the sale of a property built prior to 1978.
Local Option Real Estate Transfer Disclosure Statement (CC § 1102.6a) – Only complete if required by the local jurisdiction.
Megan’s Law – Buyer must be provided with the necessary information to search the surrounding area for sex offenders.
Natural Hazard Disclosure Statement (CC § 1103.1) – Seller must complete if the property is in proximity to any natural hazardous area.
Real Estate Tax Disclosure (CC § 1102.6c) – The following must be included in a lease agreement in 12-point font with a 14-point font title:
Notice of Your ‘Supplemental’ Property Tax Bill
California property tax law requires the Assessor to revalue real property at the time the ownership of the property changes. Because of this law, you may receive one or two supplemental tax bills, depending on when your loan closes.
The supplemental tax bills are not mailed to your lender. If you have arranged for your property tax payments to be paid through an impound account, the supplemental tax bills will not be paid by your lender. It is your responsibility to pay these supplemental bills directly to the Tax Collector. If you have any question concerning this matter, please call your local Tax Collector’s Office.
Transfer Disclosure Statement (TDS) (CC § 1102) – Specific form required by law to be completed by the seller of a residential property.
Water Heater and Smoke Detector Compliance (HSC § 13113.8) – To inform a buyer the smoke detector and water heater are in compliance with State law.
Water-Conserving Fixtures and Detector Notice (CC § 1101.4) – To inform the buyer about water-conserving fixtures that need to be replaced on new construction and the status of carbon monoxide detectors.
Wood Destroying Pests and Organisms Inspection Report (BPC § 8516) – To be given to the buyer after the inspection is complete.
Commercial Property
Commercial Purchase Agreement – Use this agreement to buy or sell commercial property.
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