California real estate disclosure laws California Real Estate Disclosures | Page 46

(LPDS) except in those fact situations where the LPDS is not required by
statute. Because of the statute’s many defined institutional and licensed
lender exemptions, this disclosure obligation is owed primarily to private
parties and to pension plans regulated by the Employees’ Retirement Income
Security Act (ERISA) having net worths of less than 15 million dollars. In
addition, this disclosure obligation is owed to certain non-ERISA regulated
pension plans, e.g., IRA’s or SEP-IRAS.
The disclosures contained in the LPDS must include:
•

Material terms of the loan;

•

Status of all existing loans/liens against the security property;
NOTE: A broker is to inform the prospective lender or note purchaser
of the option to purchase a title insurance policy or an endorsement to
an existing title insurance policy insuring the lender’s or note
purchaser’s interests in the security property. A broker should also
deliver to the prospective lender or note purchaser a copy of the
intended borrower’s written loan application and the borrower’s credit
report.

•

Information about the security property as follows:
o

Address, assessor’s parcel number, and, if available, the legal
description;

o

Age, size, and type of construction of any improvements;

o

The fair market value as estimated by an appraisal, a copy of which
appraisal report shall be provided to the prospective lender; and
NOTE: A lender may waive the requirement of an independent
appraisal in writing, on a case-by-case basis, in ]]