California real estate disclosure laws California Real Estate Disclosures | Page 70

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A statement prepared by the governing body of the association
regarding any outstanding delinquent assessments and related charges
levied by the association against the subdivision interest the prospective
buyer (or lessee) is considering buying (or leasing).

In addition, the subdivider and the broker(s)/agent(s) must deliver to the
prospective buyer (or lessee) copies of the foregoing documents prior to
close of escrow.
In the case of resale of common interest developments, the owner or his/her
agent must provide various documents to the prospective purchaser. (See
Part I, Section I, Subsection J – Furnishing Controlling Documents and
Financial Statements Concerning CID’s).
(CAL. BUS. & PROF. § 11018.6; CAL. CIV. § 1368)

E. Statement of Defects Disclosure for a Common Interest
Development Conversion
As soon as practicable before the transfer of title for the first sale of a unit in
a common interest development which has been converted from an existing
dwelling, the owner, subdivider, or the broker(s)/agent(s) for the owner or
subdivider must deliver to a prospective buyer a written statement of defects.
This statement must disclose all substantial or material defects and
malfunctions in the major systems in the individual unit and in the common
area, as known to the owner after a reasonable inspection. Major systems
include, but are not limited to, the roof, walls, floors, heating, air
conditioning, plumbing and electrical systems, and recreational facilities.
After making the inspection, if the owner finds no defects or malfunctions,
the owner must provide a written statement to the buyer disclaiming
knowledge of any defects or malfunctions.
If the required disclosure is delivered to the prospective buyer after he/she
has executed an offer to purchase, the buyer has three days after personal
delivery of the disclosure statement or five days after delivery by deposit in
the mail to terminate the offer. The termination must be by written notice to
the owner, subdivider, or the broker(s)/agent(s) of the owner or subdivider.
Any disclosure delivered after the prospective buyer has signed an offer to
purchase must contain a statement describing his/her rights, methods, and
the time to rescind. Any person who willfully fails to carry out the
requirements of this law will be liable for any actual damages suffered by
the buyer.
(CAL. CIV. § 1134)

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