Bill Text

Bill Information

PDF |Add To My Favorites |Track Bill | print page

AB-1289 Real property disclosure requirements.(2017-2018)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
Date Published: 02/17/2017 09:00 PM
AB1289:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1289


Introduced by Assembly Member Arambula

February 17, 2017


An act to amend Sections 1086, 1087, 1088, 1090, 1102, 1102.1, 1102.2, 1102.3, 1102.4, 1102.5, 1102.6a, 1102.6b, 1102.6c, 1102.9 1102.12, 1102.155, 1103, 1103.1, 1103.2, 1103.3, 1103.4, 1103.5, 1103.8, 1103.9, 1103.12, 2079, 2079.6, 2079.7, 2079.8, 2079.9, 2079.10, 2079.10.5, 2079.10a, 2079.14, 2079.15, 2079.16, 2079.17 2079.19, 2079.20, 2079.22, 2079.23, and 2079.24 of, to repeal Sections 1089,1102.14, 1103.14, and 2079.18 of, and to repeal and add Sections 2079.13 and 2079.21 of, the Civil Code, relating to real estate.


LEGISLATIVE COUNSEL'S DIGEST


AB 1289, as introduced, Arambula. Real property disclosure requirements.
The Real Estate Law provides for the licensure and regulation of real estate brokers and salespersons by the Real Estate Commissioner, the chief officer of the Bureau of Real Estate.
Existing civil law governing agency listings for the transfer of certain property, which includes real property and mobilehomes, prohibits a listing from being placed in a multiple listing service (MLS), as defined, unless authorized or directed by the owner in the listing.
If an open listing is placed in the multiple listing service, existing law requires the total compensation that the owner is to pay to go to the selling agent who procures an enforceable offer from a ready, able, and willing buyer on the terms accepted by the owner. Existing law does not require an open listing to specify compensation to the selling agent, but authorizes the open listing to state that the compensation is to be negotiated between the selling agent and the owner. Existing law authorizes an open listing to contain an agreement by the owner to pay the listing agent compensation in any amount, at any time, and for any services, other than for selling the property or procuring or finding a buyer, as the agreement may specify.
This bill would delete those provisions relating to an open listing and would revise and recast those provisions to make definitions in the Real Estate Law applicable to these provisions.
Existing civil law governing disclosures upon the transfer of residential property requires the transferor of any real property to deliver to the prospective transferee a specified written statement disclosure subject to specified requirements. If any disclosure, or any material amendment of any disclosure, is delivered after the execution of an offer to purchase, existing law requires the transferee to have a specified period of time to terminate his or her offer by delivery of a written notice of termination to the transferor or the transferor’s agent. Existing law requires these disclosures to be made on a specified form.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would provide that disclosure is complete when the 3 sections of the disclosure form are completed and delivered. The bill would also authorize a real estate licensee to complete his or her portion of the disclosure by providing all of the information on the licensee’s inspection disclosure, as specified.
Under existing law, neither the transferor nor any listing or selling agent is required to be liable for any error, inaccuracy, or omission of any information delivered pursuant to these disclosure requirements if the error, inaccuracy, or omission was not within the personal knowledge of the transferor or that listing or selling agent, was based on information timely provided by public agencies or by certain licensed persons that is required to be disclosed, and ordinary care was exercised in obtaining and transmitting it.
When a licensed person responds to such a request, existing law authorizes an expert to indicate, in writing, an understanding that the information provided will be used in fulfilling the disclosure requirements, which relieves the expert from responsibility for any items of information other than those expressly set forth in the statement.
This bill would delete those provisions relating to expert responsibility.
Existing law authorizes a city or county to elect to require a local option real estate disclosure document in addition to the real estate transfer disclosure document.
This bill would update the content of that optional disclosure document based on making the Real Estate Law definitions applicable to these provisions.
Under existing law, if more than one licensed real estate broker is acting as an agent in a transaction, the broker who has obtained the offer made by the transferee is required to deliver the disclosure to the transferee, unless the transferor has given other written instructions for delivery.
If there is only one real estate licensee in a transaction, the bill would require that real estate licensee to deliver the disclosure to the buyer. If there is no real estate licensee in a transaction, the bill would require the seller to deliver the disclosure to the buyer.
Existing law generally requires the disclosure of natural and environmental hazards, right-to-farm, and other disclosures upon the transfer of residential property.
This bill would make the definitions in the Real Estate Law applicable to these provisions. The bill would update the content of the Natural Hazard Disclosure Statement based on those newly defined terms.
Under existing law, real estate brokers and salespersons owe certain duties to prospective purchasers of real property.
This bill would make the definitions in the Real Estate Law applicable to these provisions.
Existing law requires listing agents and selling agents to provide the seller and buyer in a real property transaction with a copy of a disclosure form, which includes specified statutory provisions printed on the back, regarding real estate agency relationships. Existing law further requires these agency relationships to be confirmed to the buyer and seller in a specified form.
This bill would eliminate the requirement to include those statutory provisions, revise the content of that form to include at a minimum certain information, including consumer responsibilities, and update the terms used in that form based on the application of the Real Estate Law terminology to these provisions. The bill would also update the content of the form required to confirm real estate licensee relationships.
The bill would make the operation of its provisions contingent on enactment of an unspecified measure introduced in the 2017–18 Regular Session.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1086 of the Civil Code is amended to read:

1086.
 As used in For purposes of this article, the following terms have the meanings stated in this section: definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code apply.

(a)“Property” means real property or a mobilehome, as defined in Section 18008 of the Health and Safety Code.

(b)“Sell” and “sale” include lease and exchange.

(c)“Buyer” includes a lessee in case of a lease and the party with whom property is exchanged in case of an exchange.

(d)An “agent” is one authorized by law to act in that capacity for that type of property, and is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code or is a licensee, as defined in Section 18006 of the Health and Safety Code.

(e)An “appraiser” is one licensed or certified under Part 3 (commencing with Section 11300) of Division 4 of the Business and Professions Code.

(f)A “listing” is a written contract between an owner of property and an agent by which the agent has been authorized to sell the property or to find or obtain a buyer.

A listing may be any of the following:

(1)An “exclusive right to sell listing” is a listing whereby the owner grants to an agent, for a specified period of time, the exclusive right to sell or to find or obtain a buyer for the property, and the agent is entitled to the agreed compensation if during that period of time the property is sold, no matter who effected the sale, or the listing agent receives and presents to the owner any enforceable offer from a ready, able, and willing buyer on terms authorized by the listing or accepted by the owner. The exclusive right to sell listing may provide for compensation of the listing agent if the property is sold within a specified period after termination of the listing to anyone with whom the agent has had negotiations before that termination.

(2)An “exclusive agency listing” is the same as an “exclusive right to sell listing,” except that the owner reserves the right to sell directly but not through any other agent and, in that event, without obligation to pay compensation to the agent.

(3)An “open listing” is a listing which grants no exclusive rights or priorities to the listing agent, and a commission is payable to the agent only if the agent procures and presents to the owner an enforceable offer from a ready, able, and willing buyer on the terms authorized by the listing or accepted by the owner, before the property is otherwise sold either through another agent or by the owner directly and before the listing expires by its terms or is revoked.

(g)A “listing agent” is one who has obtained a listing of property of the kind in respect of which he or she is authorized by law to act as an agent for compensation.

(h)A “selling agent” is an agent participant in a multiple listing service who acts in cooperation with a listing agent and who sells, or finds and obtains a buyer for, the property.

(i)“Sold” includes leased and exchanged. A property is sold when a legally binding commitment to sell the property comes into existence.

SEC. 2.

 Section 1087 of the Civil Code is amended to read:

1087.
 A multiple listing service (MLS) is a facility of cooperation of agents real estate brokers and appraisers, operating through an intermediary which that does not itself act as an agent real estate licensee or appraiser, through which agents real estate brokers establish express or implied legal relationships with respect to listed properties, or which may be used by agents and appraisers, pursuant to the contracts for compensation between real estate brokers that are MLS participants in accordance with its MLS rules of the service, to prepare market evaluations and appraisals of real property. If an open listing is placed in the multiple listing service, the total compensation that the owner is to pay shall go to the selling agent who procures an enforceable offer from a ready, able, and willing buyer on the terms accepted by the owner. An open listing need specify no compensation to the selling agent, but may state that the compensation is to be negotiated between the selling agent and the owner. with respect to listed properties, or that may be used by real estate licensees and appraisers, pursuant to the rules of the service, to prepare market evaluations and appraisals of real property.

SEC. 3.

 Section 1088 of the Civil Code is amended to read:

1088.
 A listing may not be placed in a multiple listing service unless authorized or directed by the owner seller in the listing.
If an agent a real estate licensee or appraiser places a listing or other information in the multiple listing service , service, that agent real estate licensee or appraiser shall be responsible for the truth of all representations and statements made by the agent real estate licensee or appraiser of which that agent real estate licensee or appraiser had knowledge or reasonably should have had knowledge to anyone injured by their falseness or inaccuracy.

SEC. 4.

 Section 1089 of the Civil Code is repealed.
1089.

An open listing may contain an agreement by the owner to pay the listing agent compensation in any amount, at any time, and for any services, other than for selling the property or procuring or finding a buyer, as the agreement may specify.

SEC. 5.

 Section 1090 of the Civil Code is amended to read:

1090.
 Nothing in this article shall preclude a listing agent licensee from also being the selling agent. buyer’s licensee.

SEC. 6.

 Section 1102 of the Civil Code is amended to read:

1102.
 (a) Except as provided in Section 1102.2, this article applies to any transfer by sale, exchange, installment land sale contract, as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of real property or residential stock cooperative, improved with or consisting of not less than one nor more than four dwelling units. sale of residential property.

(b)Except as provided in Section 1102.2, this article shall apply to a resale transaction entered into on or after January 1, 2000, for a manufactured home, as defined in Section 18007 of the Health and Safety Code, or a mobilehome, as defined in Section 18008 of the Health and Safety Code, which manufactured home or mobilehome is classified as personal property and intended for use as a residence.

(b) For purposes of this article, the definitions contained in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(c) Any waiver of the requirements of this article is void as against public policy.

SEC. 7.

 Section 1102.1 of the Civil Code is amended to read:

1102.1.
 (a) In enacting Chapter 817 of the Statutes of 1994, it was the intent of the Legislature to clarify and facilitate the use of the real estate disclosure statement, as specified in Section 1102.6. The Legislature intended the statement to be used by transferors sellers making disclosures required under this article and by agents real estate licensees making disclosures required by Section 2079 on the agent’s real estate licensee’s portion of the real estate disclosure statement, in transfers subject to this article. In transfers not subject to this article, agents real estate licensees may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their agents, real estate licensees, to disclose any known fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a, and that nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079.
It is also the intent of the Legislature that the delivery of a real estate transfer disclosure statement may not be waived in an “as is” sale, as held in Loughrin v. Superior Court (1993) 15 Cal. App. 4th 1188.
(b) In enacting Chapter 677 of the Statutes of 1996, it was the intent of the Legislature to clarify and facilitate the use of the manufactured home and mobilehome transfer disclosure statement applicable to the resale of a manufactured home or mobilehome pursuant to subdivision (b) of Section 1102. The Legislature intended the statements to be used by transferors making disclosures required under this article and by agents real estate licensees making disclosures required by Section 2079 on the agent’s real estate licensee’s portion of the disclosure statement and as required by Section 18046 of the Health and Safety Code on the dealer’s portion of the manufactured home and mobilehome transfer disclosure statement, in transfers subject to this article. In transfers not subject to this article, agents real estate licensees may make required disclosures in a separate writing. The Legislature did not intend to affect the existing obligations of the parties to a real estate contract, or their agents, real estate licensees, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical conditions of the property and previously received reports of physical inspections noted on the disclosure form set forth in Section 1102.6 or 1102.6a or to affect the existing obligations of the parties to a manufactured home or mobilehome purchase contract, and nothing in this article shall be construed to change the duty of a real estate broker or salesperson pursuant to Section 2079 or the duty of a manufactured home or mobilehome dealer or salesperson pursuant to Section 18046 of the Health and Safety Code.
It is also the intent of the Legislature that the delivery of a mobilehome transfer disclosure statement may not be waived in an “as is” sale.
(c) It is the intent of the Legislature that manufactured home and mobilehome dealers and salespersons and real estate brokers and salespersons use the form provided pursuant to Section 1102.6d. It is also the intent of the Legislature for sellers of manufactured homes or mobilehomes who are neither manufactured home dealers or salespersons nor real estate brokers or salespersons to use the Manufactured Home/Mobilehome Transfer Disclosure Statement contained in Section 1102.6d.

SEC. 8.

 Section 1102.2 of the Civil Code is amended to read:

1102.2.
 This article does not apply to the following:
(a) Transfers which Sales that are required to be preceded by the furnishing to a prospective transferee buyer of a copy of a public report pursuant to Section 11018.1 of the Business and Professions Code and transfers which that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code.
(b) Transfers Sales pursuant to court order, including, but not limited to, transfers sales ordered by a probate court in the administration of an estate, transfers sales pursuant to a writ of execution, transfers sales by any foreclosure sale, transfers by a trustee in bankruptcy, transfers sales by eminent domain, and transfers sales resulting from a decree for specific performance.
(c) Transfers Sales to a mortgagee by a mortgagor or successor in interest who is in default, transfers sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, transfers by any foreclosure sale after default, transfers by any foreclosure sale after default in an obligation secured by a mortgage, transfers by a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, transfers sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure, transfers sales to the legal owner or lienholder of a manufactured home or mobilehome by a registered owner or successor in interest who is in default, or transfers sales by reason of any foreclosure of a security interest in a manufactured home or mobilehome.
(d) Transfers Sales by a fiduciary in the course of the administration of a decedent’s estate, trust, guardianship, conservatorship, or trust. decedent’s estate. This exemption shall not apply to a transfer sale if the trustee is a natural person who is sole a trustee of a revocable trust and he or she is a former owner of the property or was an occupant in possession of the property within the preceding year.
(e) Transfers Sales from one coowner to one or more other coowners.
(f) Transfers Sales made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors.
(g) Transfers Sales between spouses resulting from a judgment of dissolution of marriage or of legal separation or from a property settlement agreement incidental to that judgment.
(h) Transfers Sales by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(i) Transfers Sales under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(j) Transfers Sales or exchanges to or from any governmental entity.
(k) Sales of any portion of a property not constituting residential property with one to four dwelling units.

SEC. 9.

 Section 1102.3 of the Civil Code is amended to read:

1102.3.
 The transferor seller of any real property subject to this article shall deliver to the prospective transferee buyer the completed written statement required by this article, as follows:
(a) In the case of a sale, as soon as practicable before transfer of title.
(b) In the case of transfer sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before execution of the contract. For the purpose of this subdivision, “execution” means the making or acceptance of an offer.

(c)With

(c) With respect to any transfer sale subject to subdivision (a) or (b), the transferor seller shall indicate compliance with this article either on the receipt for deposit, the real property sales contract, the lease, or any addendum attached thereto or on a separate document.
If any disclosure, or any material amendment of any disclosure, required to be made by this article, is delivered after the execution of an offer to purchase, the transferee prospective buyer shall have three days after delivery in person or five days after delivery by deposit in the mail, mail or delivery of an electronic record, to terminate his or her offer by delivery of a written notice of termination to the transferor seller or the transferor’s agent. seller’s licensee. The disclosure is complete when Sections I, II and III in the form described in Section 1102.6 are completed and delivered. A real estate licensee may complete his or her portion of the required disclosure by providing all of the information on the licensee’s inspection disclosure set forth in Section 1102.6.

SEC. 10.

 Section 1102.4 of the Civil Code is amended to read:

1102.4.
 (a) Neither the transferor seller nor any listing or selling agent buyer’s licensee shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the transferor seller or that listing or selling agent, buyer’s licensee, was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting it.
(b) The delivery of any information required to be disclosed by this article to a prospective transferee buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the transferor seller or any listing or selling agent buyer’s licensee of any further duty under this article with respect to that item of information.
(c) The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, structural pest control operator, contractor, or other expert, dealing with matters within the scope of the professional’s license or expertise, shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective transferee buyer pursuant to a request therefor, whether written or oral. In responding to such a request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1102.6 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where such a statement is furnished, the expert shall not be responsible for any items of information, or parts thereof, other than those expressly set forth in the statement.

SEC. 11.

 Section 1102.5 of the Civil Code is amended to read:

1102.5.
 If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any act, occurrence, or agreement subsequent to the delivery of the required disclosures, the any inaccuracy resulting therefrom does not constitute a violation of this article. If at the time the disclosures are required to be made, an item of information required to be disclosed is unknown or not available to the transferor, seller, and the transferor seller or his or her agent real estate licensee has made a reasonable effort to ascertain it, the transferor seller may use an approximation of the information, provided the approximation is clearly identified as such, is reasonable, is based on the best information reasonably available to the transferor seller or his or her agent, real estate licensee, and is not used for the purpose of circumventing or evading this article.

SEC. 12.

 Section 1102.6a of the Civil Code is amended to read:

1102.6a.
 (a) On and after July 1, 1990, any Any city or county may elect to require disclosures on the form set forth in subdivision (b) in addition to those disclosures required by Section 1102.6. However, this section does not affect or limit the authority of a city or county to require disclosures on a different disclosure form in connection with transactions subject to this article pursuant to an ordinance adopted prior to July 1, 1990. An ordinance like this adopted prior to July 1, 1990, may be amended thereafter to revise the disclosure requirements of the ordinance, in the discretion of the city council or county board of supervisors.
(b) Disclosures required pursuant to this section pertaining to the property proposed to be transferred, sold, shall be set forth in, and shall be made on a copy of, the following disclosure form:
PRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE INSERTEDPRINTER PLEASE NOTE: TIP-IN MATERIAL TO BE INSERTED
(c) This section does not preclude the use of addenda to the form specified in subdivision (b) to facilitate the required disclosures. This section does not preclude a city or county from using the disclosure form specified in subdivision (b) for a purpose other than that specified in this section.
(d) (1) On and after January 1, 2005, if a city or county adopts a different or additional disclosure form pursuant to this section regarding the proximity or effects of an airport, the statement in that form shall contain, at a minimum, the information in the statement “Notice of Airport in Vicinity” found in Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255.
(2) On and after January 1, 2006, if a city or county does not adopt a different or additional disclosure form pursuant to this section, then the provision of an “airport influence area” disclosure pursuant to Section 11010 of the Business and Professions Code, or Section 1103.4 or 4255, or if there is not a current airport influence map, a written disclosure of an airport within two statute miles, shall be deemed to satisfy any city or county requirements for the disclosure of airports in connection with transfers sales of real property.

SEC. 13.

 Section 1102.6b of the Civil Code is amended to read:

1102.6b.
 (a) This section applies to all transfers sales of real property for which all of the following apply:
(1) The transfer sale is subject to this article.
(2) The property being transferred sold is subject to a continuing lien securing the levy of special taxes pursuant to the Mello-Roos Community Facilities Act (Chapter 2.5 (commencing with Section 53311) of Part 1 of Division 2 of Title 5 of the Government Code), to a fixed lien assessment collected in installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or to a contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code.
(3) A notice is not required pursuant to Section 53341.5 of the Government Code.
(b) In addition to any other disclosure required pursuant to this article, the seller of any real property subject to this section shall make a good faith effort to obtain a disclosure notice concerning the special tax as provided for in Section 53340.2 of the Government Code, or a disclosure notice concerning an assessment installment as provided in Section 53754 of the Government Code, from each local agency that levies a special tax pursuant to the Mello-Roos Community Facilities Act, or that collects assessment installments to secure bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code), or a disclosure notice concerning the contractual assessment as provided in Section 5898.24 of the Streets and Highways Code, on the property being transferred, sold, and shall deliver that notice or those notices to the prospective purchaser, buyer, as long as the notices are made available by the local agency.
(c)  (1) The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the bonds issued pursuant to the Improvement Bond Act of 1915 (Division 10 (commencing with Section 8500) of the Streets and Highways Code) by delivering a disclosure notice that is substantially equivalent and obtained from another source, until December 31, 2004. source.
(2) The seller of real property subject to this section may satisfy the disclosure notice requirements in regard to the assessments collected under the contractual assessment program authorized pursuant to Chapter 29 (commencing with Section 5898.10) of Part 3 of Division 7 of the Streets and Highway Code by delivering a disclosure notice that is substantially equivalent and obtained from another source.
(3) For the purposes of this section, a substantially equivalent disclosure notice includes, but is not limited to, a copy of the most recent year’s property tax bill or an itemization of current assessment amounts applicable to the property.
(d) (1) Notwithstanding subdivision (c), at any time after the effective date of this section, the seller of real property subject to this section may satisfy the disclosure notice requirements of this section by delivering a disclosure notice obtained from a nongovernmental source that satisfies the requirements of paragraph (2).
(2) A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe a special tax pursuant to the Mello-Roos Community Facilities Act levied against the property or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy a special tax pursuant to the Mello-Roos Community Facilities Act against the property, and shall include the name of the Mello-Roos entity levying taxes against the property, the annual tax due for the Mello-Roos entity for the current tax year, the maximum tax that may be levied against the property in any year, the percentage by which the maximum tax for the Mello-Roos entity may increase per year, and the date until the tax may be levied against the property for the Mello-Roos entity and a contact telephone number, if available, for further information about the Mello-Roos entity. A notice provided by a private entity other than a designated office, department, or bureau of the levying entity may be modified as needed to clearly and accurately describe special assessments and bonds pursuant to the Improvement Bond Act of 1915 levied against the property, or to clearly and accurately consolidate information about two or more districts that levy or are authorized to levy special assessments and bonds pursuant to the Improvement Bond Act of 1915 against the property, and shall include the name of the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915, the current annual tax on the property for the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915 and a contact telephone number, if available, for further information about the special assessments and bonds issued pursuant to the Improvement Bond Act of 1915.
(3) This section does not change the ability to make disclosures pursuant to Section 1102.4 of the Civil Code.
(e) If a disclosure received pursuant to subdivision (b), (c), or (d) has been delivered to the transferee, buyer, a seller or his or her agent real estate licensee is not required to provide additional information concerning, and information in the disclosure shall be deemed to satisfy the responsibility of the seller or his or her agent real estate licensee to inform the transferee buyer regarding the special tax or assessment installments and the district. Notwithstanding subdivision (b), (c), or (d), nothing in this section imposes a duty to discover a special tax or assessment installments or the existence of any levying district not actually known to the agents. real estate licensees.

SEC. 14.

 Section 1102.6c of the Civil Code is amended to read:

1102.6c.
 (a) In addition to any other disclosure required pursuant to this article, it shall be the sole responsibility of the seller of any real property subject to this article, or his or her agent, real estate licensee, to deliver to the prospective purchaser buyer a disclosure notice that includes both of the following:
(1) A notice, in at least 12-point type or a contrasting color, as follows:
“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. tax collector. If you have any question concerning this matter, please call your local Tax Collector’s Office.” tax collector’s office.
(2) A title, in at least 14-point type or a contrasting color, that reads as follows: “Notice of Your ’Supplemental’ Property Tax Bill.”
(b) The disclosure notice requirements of this section may be satisfied by delivering a disclosure notice pursuant to Section 1102.6b that satisfies the requirements of subdivision (a).

SEC. 15.

 Section 1102.9 of the Civil Code is amended to read:

1102.9.
 Any disclosure made pursuant to this article may be amended in writing by the transferor seller or his or her agent, real estate licensee, but the amendment shall be subject to Section 1102.3 or 1102.3a.

SEC. 16.

 Section 1102.12 of the Civil Code is amended to read:

1102.12.
 (a) If more than one licensed real estate broker is acting as an agent in In a real estate transaction subject to this article, the broker who has obtained the offer made by the transferee a buyer’s licensee or a dual licensee shall, except as otherwise provided in this article, deliver the disclosure required by this article to the transferee, buyer, unless the transferor seller has given other written instructions for delivery. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.
(b) If a licensed real estate broker licensee responsible for delivering the disclosures under this section cannot obtain the disclosure document required and does not have written assurance from the transferee buyer that the disclosure has been received, the broker real estate licensee shall advise the transferee buyer in writing of his or her rights to the disclosure. A licensed real estate broker licensee responsible for delivering disclosures under this section shall maintain a record of the action taken to effect compliance in accordance with Section 10148 of the Business and Professions Code.

SEC. 17.

 Section 1102.14 of the Civil Code is repealed.
1102.14.

(a)As used in this article, “listing agent” means listing agent as defined in subdivision (f) of Section 1086.

(b)As used in this article, “selling agent” means selling agent as defined in subdivision (g) of Section 1086, exclusive of the requirement that the agent be a participant in a multiple listing service as defined in Section 1087.

SEC. 18.

 Section 1102.155 of the Civil Code is amended to read:

1102.155.
 (a) (1) The seller of residential real property subject to this article shall disclose, in writing, that Section 1101.4 of the Civil Code requires that California single-family residences be equipped with water-conserving plumbing fixtures on or before January 1, 2017, and shall disclose whether the property includes any noncompliant plumbing fixtures. fixtures as defined in subdivision (c) of Section 1101.3.
(2) The seller shall affirm that this representation is that of the seller and not a representation of any agent, real estate licensee, and that this disclosure is not intended to be part of any contract between the buyer and the seller. The seller shall further affirm that this disclosure is not a warranty of any kind by the seller or any agent real estate licensee representing any principal in the transaction and is not a substitute for any inspections that or warranties that any principal may wish to obtain.
(b) This section shall become operative on January 1, 2017.

SEC. 19.

 Section 1103 of the Civil Code is amended to read:

1103.
 (a) Except For purposes of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(b) Except as provided in Section 1103.1, this article applies to the transfer by sale, a sale, exchange, installment land sale real property sales contract, as defined in Section 2985, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any real property described in subdivision (c), (d), or residential stock cooperative, improved with or consisting of not less than one nor more than four dwelling units.

(b)

(c) Except as provided in Section 1103.1, this article shall apply applies to a resale transaction entered into on or after January 1, 2000, for a manufactured home, as defined in Section 18007 of the Health and Safety Code, that is classified as personal property intended for use as a residence, or a mobilehome, as defined in Section 18008 of the Health and Safety Code, that is classified as personal property intended for use as a residence, if the real property on which the manufactured home or mobilehome is located is real property described in subdivision (c). (d).

(c)

(d) This article shall apply to the transactions described in subdivisions (a) (b) and (b) (c) only if the transferor seller or his or her agent real estate licensee is required by one or more of the following to disclose the property’s location within a hazard zone:
(1) A person who is acting as an agent a real estate licensee for a transferor seller of real property that is located within a special flood hazard area (any type Zone “A” or “V”) designated by the Federal Emergency Management Agency, or the transferor seller if he or she is acting without an agent, a real estate licensee, shall disclose to any prospective transferee buyer the fact that the property is located within a special flood hazard area if either:
(A) The transferor, seller, or the transferor’s agent, seller’s real estate licensee, has actual knowledge that the property is within a special flood hazard area.
(B) The local jurisdiction has compiled a list, by parcel, of properties that are within the special flood hazard area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(2) A person who is acting as an agent a real estate licensee for a transferor seller of real property that is located within an area of potential flooding designated pursuant to Section 8589.5 of the Government Code, or the transferor seller if he or she is acting without an agent, a real estate licensee, shall disclose to any prospective transferee buyer the fact that the property is located within an area of potential flooding if either:
(A) The transferor, seller, or the transferor’s agent, seller’s real estate licensee, has actual knowledge that the property is within an inundation area.
(B) The local jurisdiction has compiled a list, by parcel, of properties that are within the inundation area and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the parcel list.
(3) A transferor seller of real property that is located within a very high fire hazard severity zone, designated pursuant to Section 51178 of the Government Code, shall disclose to any prospective transferee buyer the fact that the property is located within a very high fire hazard severity zone and is subject to the requirements of Section 51182 of the Government Code if either:
(A) The transferor, seller or the transferor’s agent, seller’s real estate licensee, has actual knowledge that the property is within a very high fire hazard severity zone.
(B) A map that includes the property has been provided to the local agency pursuant to Section 51178 of the Government Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the local agency.
(4) A person who is acting as an agent a real estate licensee for a transferor seller of real property that is located within an earthquake fault zone, designated pursuant to Section 2622 of the Public Resources Code, or the transferor seller if he or she is acting without an agent, a real estate licensee, shall disclose to any prospective transferee buyer the fact that the property is located within a delineated earthquake fault zone if either:
(A) The transferor, seller, or the transferor’s agent, seller’s real estate licensee, has actual knowledge that the property is within a delineated earthquake fault zone.
(B) A map that includes the property has been provided to the city or county pursuant to Section 2622 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(5) A person who is acting as an agent a real estate licensee for a transferor seller of real property that is located within a seismic hazard zone, designated pursuant to Section 2696 of the Public Resources Code, or the transferor seller if he or she is acting without an agent, a real estate licensee shall disclose to any prospective transferee buyer the fact that the property is located within a seismic hazard zone if either:
(A) The transferor, seller, or the transferor’s agent, seller’s real estate licensee, has actual knowledge that the property is within a seismic hazard zone.
(B) A map that includes the property has been provided to the city or county pursuant to Section 2696 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(6) A transferor seller of real property that is located within a state responsibility area determined by the board, pursuant to Section 4125 of the Public Resources Code, shall disclose to any prospective transferee buyer the fact that the property is located within a wildland area that may contain substantial forest fire risks and hazards and is subject to the requirements of Section 4291 of the Public Resources Code if either:
(A) The transferor, seller, or the transferor’s agent, seller’s real estate licensee, has actual knowledge that the property is within a wildland fire zone.
(B) A map that includes the property has been provided to the city or county pursuant to Section 4125 of the Public Resources Code and a notice has been posted at the offices of the county recorder, county assessor, and county planning agency that identifies the location of the map and any information regarding changes to the map received by the county.
(d) Any waiver of the requirements of this article is void as against public policy.

SEC. 20.

 Section 1103.1 of the Civil Code is amended to read:

1103.1.
 (a) This article does not apply to the following transfers: sales:
(1) Transfers Sales pursuant to court order, including, but not limited to, transfers sales ordered by a probate court in administration of an estate, transfers sales pursuant to a writ of execution, transfers sales by any foreclosure sale, transfers sales by a trustee in bankruptcy, transfers sales by eminent domain, and transfers sales resulting from a decree for specific performance.
(2) Transfers Sales to a mortgagee by a mortgagor or successor in interest who is in default, transfers sales to a beneficiary of a deed of trust by a trustor or successor in interest who is in default, transfers by any foreclosure sale after default, transfers by any foreclosure sale after default in an obligation secured by a mortgage, transfers by a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, or transfers sales by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or has acquired the real property by a deed in lieu of foreclosure.
(3) Transfers Sales by a fiduciary in the course of the administration of a decedent’s estate, trust, guardianship, conservatorship, or trust. decedent’s estate. This exemption shall not apply to a sale if the trustee is a natural person who is a trustee of a revocable trust and he or she is a former owner of the property or an occupant in possession of the property within the preceding year.
(4) Transfers Sales from one coowner to one or more other coowners.
(5) Transfers Sales made to a spouse, or to a person or persons in the lineal line of consanguinity of one or more of the transferors. sellers.
(6) Transfers Sales between spouses resulting from a judgment of dissolution of marriage or of legal separation of the parties or from a property settlement agreement incidental to that judgment.
(7) Transfers Sales by the Controller in the course of administering Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure.
(8) Transfers Sales under Chapter 7 (commencing with Section 3691) or Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code.
(9) Transfers Sales or exchanges to or from any governmental entity.
(b) Transfers Sales not subject to this article may be subject to other disclosure requirements, including those under Sections 8589.3, 8589.4, and 51183.5 of the Government Code and Sections 2621.9, 2694, and 4136 of the Public Resources Code. In transfers sales not subject to this article, agents real estate licensees may make required disclosures in a separate writing.

SEC. 21.

 Section 1103.2 of the Civil Code is amended to read:

1103.2.
 (a) The disclosures required by this article are set forth in, and shall be made on a copy of, the following Natural Hazard Disclosure Statement:
NATURAL HAZARD DISCLOSURE STATEMENT
This statement applies to the following property: 
The transferor seller and his or her agent(s) real estate licensee(s) or a third-party consultant disclose the following information with the knowledge that even though this is not a warranty, prospective transferees buyers may rely on this information in deciding whether and on what terms to purchase the subject property. Transferor Seller hereby authorizes any agent(s) real estate licensee(s) representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property.
The following are representations made by the transferor seller and his or her agent(s) real estate licensee(s) based on their knowledge and maps drawn by the state and federal governments. This information is a disclosure and is not intended to be part of any contract between the transferee seller and transferor. buyer.
THIS REAL PROPERTY LIES WITHIN THE FOLLOWING
HAZARDOUS AREA(S):
A SPECIAL FLOOD HAZARD AREA (Any type Zone “A” or “V”) designated by the Federal Emergency Management Agency.
Yes ____ No ____ Do not know and
_____ information not
_____ available from local
_____ jurisdiction ____
AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code.
Yes ____ No ____ Do not know and
_____ information not
_____ available from local
_____ jurisdiction ____
A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code.
Yes ____ No ____
A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the state’s responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code.
Yes ____ No ____
AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code.
Yes ____ No ____
A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public
Resources Code.
Yes (Landslide Zone)____________ Yes (Liquefaction Zone) ______
No ____ Map not yet released by
state ____
THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER.
THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER. TRANSFEREE(S) AND TRANSFEROR(S) SELLER(S) AND BUYER(S) MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY.
Signature of Transferor(s) Seller(s)
Date
Signature of Transferor(s) Seller(s)
Date
Agent(s) Seller’s Licensee(s)
Date
Agent(s) Seller’s Licensee(s)
Date
Check only one of the following: _____
◻ Transferor(s) Seller(s) and their agent(s) real estate licensee(s) represent that the information
herein is true and correct to the best of their knowledge as of the
date signed by the transferor(s) and agent(s).
_____
◻ Transferor(s) Seller(s) and their agent(s) real estate licensee(s) acknowledge that they have
exercised good faith in the selection of a third-party report provider
as required in Civil Code Section 1103.7, and that the
representations made in this Natural Hazard Disclosure Statement
are based upon information provided by the independent third-party
disclosure provider as a substituted disclosure pursuant to Civil Code
Section 1103.4. Neither transferor(s) seller(s) nor their agent(s) real estate licensee(s) (1) has
independently verified the information contained in this statement
and report or (2) is personally aware of any errors or inaccuracies
in the information contained on the statement. This statement was
prepared by the provider below:
Third-Party
Disclosure Provider(s)
Date
Transferee Buyer represents that he or she has read and understands this
document. Pursuant to Civil Code Section 1103.8, the
representations made in this Natural Hazard Disclosure Statement
do not constitute all of the transferor’s seller’s or agent’s real estate licensee’s disclosure
obligations in this transaction.
Signature of Transferee(s) Buyer(s)
Date
Signature of Transferee(s) Buyer(s)
Date
(b) If an earthquake fault zone, seismic hazard zone, very high fire hazard severity zone, or wildland fire area map or accompanying information is not of sufficient accuracy or scale that a reasonable person can determine if the subject real property is included in a natural hazard area, the transferor or transferor’s agent seller or seller’s real estate licensee shall mark “Yes” on the Natural Hazard Disclosure Statement. The transferor or transferor’s agent seller’s real estate licensee may mark “No” on the Natural Hazard Disclosure Statement if he or she attaches a report prepared pursuant to subdivision (c) of Section 1103.4 that verifies the property is not in the hazard zone. Nothing in this subdivision is intended to limit or abridge any existing duty of the transferor seller or the transferor’s agents seller’s real estate licensees to exercise reasonable care in making a determination under this subdivision.
(c) If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is no longer within a special flood hazard area, then the transferor seller or transferor’s agent seller’s real estate licensee may mark “No” on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The transferor seller or transferor’s agent seller’s real estate licensee shall attach a copy of the Letter of Map Revision to the disclosure statement.
(d) If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is within a special flood hazard area and the location of the letter has been posted pursuant to subdivision (g) of Section 8589.3 of the Government Code, then the transferor seller or transferor’s agent seller’s real estate licensee shall mark “Yes” on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The transferor seller or transferor’s agent seller’s real estate licensee shall attach a copy of the Letter of Map Revision to the disclosure statement.
(e) The disclosure required pursuant to this article may be provided by the transferor seller and the transferor’s agent seller’s real estate licensee in the Local Option Real Estate Disclosure Statement described in Section 1102.6a, provided that the Local Option Real Estate Disclosure Statement includes substantially the same information and substantially the same warnings that are required by this section.
(f) (1) The legal effect of a consultant’s report delivered to satisfy the exemption provided by Section 1103.4 is not changed when it is accompanied by a Natural Hazard Disclosure Statement.
(2) A consultant’s report shall always be accompanied by a completed and signed Natural Hazard Disclosure Statement.
(3) In a disclosure statement required by this section, an agent a real estate licensee and third-party provider may cause his or her name to be preprinted in lieu of an original signature in the portions of the form reserved for signatures. The use of a preprinted name shall not change the legal effect of the acknowledgment.
(g) The disclosure required by this article is only a disclosure between the transferor, seller, the transferor’s agents, seller’s real estate licensees, and the transferee, prospective buyer, and shall not be used by any other party, including, but not limited to, insurance companies, lenders, or governmental agencies, for any purpose.
(h) In any transaction in which a transferor seller has accepted, prior to June 1, 1998, an offer to purchase, the transferor, seller, or his or her agent, real estate licensee shall be deemed to have complied with the requirement of subdivision (a) if the transferor seller or agent real estate licensee delivers to the prospective transferee buyer a statement that includes substantially the same information and warning as the Natural Hazard Disclosure Statement.

SEC. 22.

 Section 1103.3 of the Civil Code is amended to read:

1103.3.
 (a) The transferor seller of any real property subject to this article shall deliver to the prospective transferee buyer the written statement required by this article, as follows:
(1) In the case of a sale, as soon as practicable before transfer of title.
(2) In the case of transfer sale by a real property sales contract, as defined in Section 2985, or by a lease together with an option to purchase, or a ground lease coupled with improvements, as soon as practicable before the prospective buyer’s execution of the contract. For the purpose of this subdivision, “execution” means the making or acceptance of an offer.
(b) The transferor seller shall indicate compliance with this article either on the receipt for deposit, the real property sales contract, the lease, any addendum attached thereto, or on a separate document.
(c) If any disclosure, or any material amendment of any disclosure, required to be made pursuant to this article is delivered after the execution of an offer to purchase, the transferee prospective buyer shall have three days after delivery in person or five days after delivery by deposit in the mail or delivery of an electronic record, to terminate his or her offer by delivery of a written notice of termination to the transferor seller or the transferor’s agent. seller’s real estate licensee.

SEC. 23.

 Section 1103.4 of the Civil Code is amended to read:

1103.4.
 (a) Neither the transferor seller nor any listing licensee or selling agent buyer’s licensee shall be liable for any error, inaccuracy, or omission of any information delivered pursuant to this article if the error, inaccuracy, or omission was not within the personal knowledge of the transferor seller or the listing licensee or selling agent, buyer’s licensee and was based on information timely provided by public agencies or by other persons providing information as specified in subdivision (c) that is required to be disclosed pursuant to this article, and ordinary care was exercised in obtaining and transmitting the information.
(b) The delivery of any information required to be disclosed by this article to a prospective transferee buyer by a public agency or other person providing information required to be disclosed pursuant to this article shall be deemed to comply with the requirements of this article and shall relieve the transferor or any listing or selling agent seller, listing licensee, and buyer’s licensee of any further duty under this article with respect to that item of information.
(c) The delivery of a report or opinion prepared by a licensed engineer, land surveyor, geologist, or expert in natural hazard discovery dealing with matters within the scope of the professional’s license or expertise shall be sufficient compliance for application of the exemption provided by subdivision (a) if the information is provided to the prospective transferee buyer pursuant to a request therefor, whether written or oral. In responding to that request, an expert may indicate, in writing, an understanding that the information provided will be used in fulfilling the requirements of Section 1103.2 and, if so, shall indicate the required disclosures, or parts thereof, to which the information being furnished is applicable. Where that statement is furnished, the expert shall not be responsible for any items of information, or parts thereof, other than those expressly set forth in the statement.
(1) In responding to the request, the expert shall determine whether the property is within an airport influence area as defined in subdivision (b) of Section 11010 of the Business and Professions Code. If the property is within an airport influence area, the report shall contain the following statement:
NOTICE OF AIRPORT IN VICINITY
This property is presently located in the vicinity of an
airport, within what is known as an airport influence area. For that
reason, the property may be subject to some of the annoyances or
inconveniences associated with proximity to airport operations
(for example: noise, vibration, or odors). Individual sensitivities
to those annoyances can vary from person to person. You may wish to
consider what airport annoyances, if any, are associated with the
property before you complete your purchase and determine whether they
are acceptable to you.
(2) In responding to the request, the expert shall determine whether the property is within the jurisdiction of the San Francisco Bay Conservation and Development Commission, as defined in Section 66620 of the Government Code. If the property is within the commission’s jurisdiction, the report shall contain the following notice:
NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION JURISDICTION
This property is located within the jurisdiction of the San Francisco Bay Conservation and Development Commission. Use and development of property within the commission’s jurisdiction may be subject to special regulations, restrictions, and permit requirements. You may wish to investigate and determine whether they are acceptable to you and your intended use of the property before you complete your transaction.
(3) In responding to the request, the expert shall determine whether the property is presently located within one mile of a parcel of real property designated as “Prime Farmland,” “Farmland of Statewide Importance,” “Unique Farmland,” “Farmland of Local Importance,” or “Grazing Land” on the most current “Important Farmland Map” issued by the California Department of Conservation, Division of Land Resource Protection, utilizing solely the county-level GIS map data, if any, available on the Farmland Mapping and Monitoring Program Web site. If the residential property is within one mile of a designated farmland area, the report shall contain the following notice:

NOTICE OF RIGHT TO FARM
This property is located within one mile of a farm or ranch land designated on the current county-level GIS “Important Farmland Map,” issued by the California Department of Conservation, Division of Land Resource Protection. Accordingly, the property may be subject to inconveniences or discomforts resulting from agricultural operations that are a normal and necessary aspect of living in a community with a strong rural character and a healthy agricultural sector. Customary agricultural practices in farm operations may include, but are not limited to, noise, odors, dust, light, insects, the operation of pumps and machinery, the storage and disposal of manure, bee pollination, and the ground or aerial application of fertilizers, pesticides, and herbicides. These agricultural practices may occur at any time during the 24-hour day. Individual sensitivities to those practices can vary from person to person. You may wish to consider the impacts of such agricultural practices before you complete your purchase. Please be advised that you may be barred from obtaining legal remedies against agricultural practices conducted in a manner consistent with proper and accepted customs and standards pursuant to Section 3482.5 of the Civil Code or any pertinent local ordinance.
(4) In responding to the request, the expert shall determine, utilizing map coordinate data made available by the Office of Mine Reclamation, whether the property is presently located within one mile of a mine operation for which map coordinate data has been reported to the director pursuant to Section 2207 of the Public Resources Code. If the expert determines, from the available map coordinate data, that the residential property is located within one mile of a mine operation, the report shall contain the following notice:
 
NOTICE OF MINING OPERATIONS:
This property is located within one mile of a mine operation for which the mine owner or operator has reported mine location data to the Department of Conservation pursuant to Section 2207 of the Public Resources Code. Accordingly, the property may be subject to inconveniences resulting from mining operations. You may wish to consider the impacts of these practices before you complete your transaction.

SEC. 24.

 Section 1103.5 of the Civil Code is amended to read:

1103.5.
 (a) After a transferor seller and his or her agent real estate licensee comply with Section 1103.2, they shall be relieved of further duty under this article with respect to those items of information. The transferor seller and his or her agent real estate licensee shall not be required to provide notice to the transferee prospective buyer if the information provided subsequently becomes inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence, unless the transferor seller or agent real estate licensee has actual knowledge that the information has become inaccurate.
(b) If information disclosed in accordance with this article is subsequently rendered inaccurate as a result of any governmental action, map revision, changed information, or other act or occurrence subsequent to the delivery of the required disclosures, the inaccuracy resulting therefrom does not constitute a violation of this article.

SEC. 25.

 Section 1103.8 of the Civil Code is amended to read:

1103.8.
 (a) The specification of items for disclosure in this article does not limit or abridge any obligation for disclosure created by any other provision of law or that may exist in order to avoid fraud, misrepresentation, or deceit in the transfer sale transaction. The legislature Legislature does not intend to affect the existing obligations of the parties to a real estate contract, or their agents, licensees, to disclose any fact materially affecting the value and desirability of the property, including, but not limited to, the physical condition of the property and previously received reports of physical inspection noted on the disclosure form provided pursuant to Section 1102.6 or 1102.6a.
(b) Nothing in this article shall be construed to change the duty of a real estate broker or salesperson licensee pursuant to Section 2079.

SEC. 26.

 Section 1103.9 of the Civil Code is amended to read:

1103.9.
 Any disclosure made pursuant to this article may be amended in writing by the transferor seller or his or her agent, real estate licensee, but the amendment shall be subject to Section 1103.3.

SEC. 27.

 Section 1103.12 of the Civil Code is amended to read:

1103.12.
 (a) If more than one licensed real estate broker is acting as an agent in In a real estate transaction subject to this article, the broker who has obtained the offer made by the transferee a buyer’s licensee or a dual licensee shall, except as otherwise provided in this article, deliver the disclosure required by this article to the transferee, buyer, unless the transferor seller has given other written instructions for delivery. If there is only one real estate broker in a transaction subject to this article, that real estate licensee shall deliver the disclosure required by this article to the buyer. If there is no real estate broker in a transaction, the seller shall deliver the disclosure required by this article to the buyer.
(b) If a licensed real estate broker responsible for delivering the disclosures under this section cannot obtain the disclosure document required and does not have written assurance from the transferee buyer that the disclosure has been received, the broker shall advise the transferee buyer in writing of his or her rights to the disclosure. A licensed real estate broker responsible for delivering disclosures under this section shall maintain a record of the action taken to effect compliance in accordance with Section 10148 of the Business and Professions Code.

SEC. 28.

 Section 1103.14 of the Civil Code is repealed.
1103.14.

(a)As used in this article, “listing agent” means listing agent as defined in subdivision (f) of Section 1086.

(b) As used in this article, “selling agent” means selling agent as defined in subdivision (g) of Section 1086, exclusive of the requirement that the agent be a participant in a multiple listing service as defined in Section 1087.

SEC. 29.

 Section 2079 of the Civil Code is amended to read:

2079.
 (a) It is the duty of a real estate broker or salesperson, licensee, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code, to a prospective purchaser buyer of residential real property comprising one to four dwelling units, or a manufactured home as defined in Section 18007 of the Health and Safety Code, to conduct a reasonably competent and diligent visual inspection of the property offered for sale and to disclose to that prospective purchaser buyer all facts materially affecting the value or desirability of the property that an investigation would reveal, if that broker licensee has a written contract with the seller to find or obtain a buyer or is a broker who acts in cooperation with that broker licensee to find and obtain a buyer.
(b) It is the duty of a real estate broker or salesperson licensee, licensed under Division 4 (commencing with Section 10000) of the Business and Professions Code Code, to comply with this section and any regulations imposing standards of professional conduct adopted pursuant to Section 10080 of the Business and Professions Code with reference to Sections 10176 and 10177 of the Business and Professions Code.

SEC. 30.

 Section 2079.6 of the Civil Code is amended to read:

2079.6.
 This article does not apply to transfers sales which are required to be preceded by the furnishing, to a prospective transferee, buyer, of a copy of a public report pursuant to Section 11018.1 or Section 11234 of the Business and Professions Code and transfers sales that can be made without a public report pursuant to Section 11010.4 of the Business and Professions Code, unless the property has been previously occupied.

SEC. 31.

 Section 2079.7 of the Civil Code is amended to read:

2079.7.
 (a) If a consumer information booklet described in Section 10084.1 of the Business and Professions Code is delivered to a transferee buyer in connection with the transfer sale of real property, including property specified in Section 1102 of the Civil Code, or manufactured housing, as defined in Section 18007 of the Health and Safety Code, a seller or broker licensee is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the transferee buyer regarding, common environmental hazards, as described in the booklet, that can affect real property.
(b) Notwithstanding subdivision (a), nothing in this section either increases or decreases the duties, if any, of sellers or brokers, licensees, including but not limited to, the duties of a seller or broker licensee under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or Section 25359.7 of the Health and Safety Code, or alters the duty of a seller or broker licensee to disclose the existence of known environmental hazards on or affecting the real property.

SEC. 32.

 Section 2079.8 of the Civil Code is amended to read:

2079.8.
 (a) If a Homeowner’s Guide to Earthquake Safety described in Section 10149 of the Business and Professions Code is delivered to a transferee buyer in connection with the transfer sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or broker licensee is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the transferee buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the transferee buyer or seller might consider.
(b) Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers or brokers, licensees, including, but not limited to, the duties of a seller or broker licensee under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2, or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, or alters the duty of a seller or broker licensee to disclose the existence of known hazards on or affecting the real property.

SEC. 33.

 Section 2079.9 of the Civil Code is amended to read:

2079.9.
 (a) If a Commercial Property Owner’s Guide to Earthquake Safety described in Section 10147 of the Business and Professions Code is delivered to a transferee buyer in connection with the transfer sale of real property, including property specified in Section 1102 or under Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, a seller or broker licensee is not required to provide additional information concerning, and the information shall be deemed to be adequate to inform the transferee buyer regarding, geologic and seismic hazards, in general, as described in the guide, that may affect real property and mitigating measures that the transferee buyer or seller might consider.
(b) Notwithstanding subdivision (a), nothing in this section increases or decreases the duties, if any, of sellers, their brokers or agents real estate licensees under this article or under Chapter 7.5 (commencing with Section 2621) or Chapter 7.8 (commencing with Section 2690) of Division 2 of the Public Resources Code, or alters the duty of a seller, agent, or broker seller or real estate licensee to disclose the existence of known hazards on or affecting the real property.

SEC. 34.

 Section 2079.10 of the Civil Code is amended to read:

2079.10.
 (a) If the informational booklet published pursuant to Section 25402.9 of the Public Resources Code, concerning the statewide home energy rating program adopted pursuant to Section 25942 of the Public Resources Code, is delivered to a transferee buyer in connection with the transfer sale of real property, including, but not limited to, property specified in Section 1102, manufactured homes as defined in Section 18007 of the Health and Safety Code, and property subject to Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, the seller or broker licensee is not required to provide information additional to that contained in the booklet concerning home energy ratings, and the information in the booklet shall be deemed to be adequate to inform the transferee buyer about the existence of a statewide home energy rating program.
(b) Notwithstanding subdivision (a), nothing in this section alters any existing duty of the seller or broker licensee under any other law including, but not limited to, the duties of a seller or broker licensee under this article, Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2 of the Civil Code, or Chapter 7.5 (commencing with Section 2621) of Division 2 of the Public Resources Code, to disclose information concerning the existence of a home energy rating program affecting the real property.
(c) If the informational booklet or materials described in Section 375.5 of the Water Code concerning water conservation and water conservation programs are delivered to a transferee buyer in connection with the transfer sale of real property, including property described in subdivision (a), the seller or broker licensee is not required to provide information concerning water conservation and water conservation programs that is additional to that contained in the booklet or materials, and the information in the booklet or materials shall be deemed to be adequate to inform the transferee buyer about water conservation and water conservation programs.

SEC. 35.

 Section 2079.10.5 of the Civil Code is amended to read:

2079.10.5.
 (a) Every contract for the sale of residential real property entered into on or after July 1, 2013, shall contain, in not less than 8-point type, a notice as specified below:

NOTICE REGARDING GAS AND HAZARDOUS LIQUID TRANSMISSION PIPELINES
This notice is being provided simply to inform you that information about the general location of gas and hazardous liquid transmission pipelines is available to the public via the National Pipeline Mapping System (NPMS) Internet Web site maintained by the United States Department of Transportation at http://www.npms.phmsa.dot.gov/. To seek further information about possible transmission pipelines near the property, you may contact your local gas utility or other pipeline operators in the area. Contact information for pipeline operators is searchable by ZIP Code and county on the NPMS Internet Web site.

(b) Upon delivery of the notice to the transferee buyer of the real property, the seller or broker is not required to provide information in addition to that contained in the notice regarding gas and hazardous liquid transmission pipelines in subdivision (a). The information in the notice shall be deemed to be adequate to inform the transferee buyer about the existence of a statewide database of the locations of gas and hazardous liquid transmission pipelines and information from the database regarding those locations.
(c) Nothing in this section shall alter any existing duty under any other statute or decisional law imposed upon the seller or broker, including, but not limited to, the duties of a seller or broker under this article, or the duties of a seller or broker licensee under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.

SEC. 36.

 Section 2079.10a of the Civil Code is amended to read:

2079.10a.
 (a) Every lease or rental agreement for residential real property entered into on or after July 1, 1999, and every contract for the sale of residential real property comprised of one to four dwelling units entered into on or after that date, shall contain, in not less than 8-point type, a notice as specified in paragraph (1), (2), or (3).
(1) A contract entered into by the parties on or after July 1, 1999, and before September 1, 2005, shall contain the following notice:
Notice: The California Department of Justice, sheriff’s departments, police departments serving jurisdictions of 200,000 or more, and many other local law enforcement authorities maintain for public access a database of the locations of persons required to register pursuant to paragraph (1) of subdivision (a) of Section 290.4 of the Penal Code. The database is updated on a quarterly basis and is a source of information about the presence of these individuals in any neighborhood. The Department of Justice also maintains a Sex Offender Identification Line through which inquiries about individuals may be made. This is a “900” telephone service. Callers must shall have specific information about individuals they are checking. Information regarding neighborhoods is not available through the “900” telephone service.
(2) A contract entered into by the parties on or after September 1, 2005, and before April 1, 2006, shall contain either the notice specified in paragraph (1) or the notice specified in paragraph (3).
(3) A contract entered into by the parties on or after April 1, 2006, shall contain the following notice:
Notice: Pursuant to Section 290.46 of the Penal Code, information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender’s criminal history, this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides.
(b) Subject to subdivision (c), upon delivery of the notice to the lessee or transferee buyer of the real property, the lessor, seller, or broker is not required to provide information in addition to that contained in the notice regarding the proximity of registered sex offenders. The information in the notice shall be deemed to be adequate to inform the lessee or transferee buyer about the existence of a statewide database of the locations of registered sex offenders and information from the database regarding those locations. The information in the notice shall not give rise to any cause of action against the disclosing party by a registered sex offender.
(c) Notwithstanding subdivisions (a) and (b), nothing in this section shall alter any existing duty of the lessor, seller, or broker licensee under any other statute or decisional law including, but not limited to, the duties of a lessor, seller, or broker under this article, or the duties of a seller or broker licensee under Article 1.5 (commencing with Section 1102) of Chapter 2 of Title 4 of Part 4 of Division 2.

SEC. 37.

 Section 2079.13 of the Civil Code is repealed.
2079.13.

As used in Sections 2079.7, and 2079.14 to 2079.24, inclusive, the following terms have the following meanings:

(a)“Agent” means a person acting under provisions of Title 9 (commencing with Section 2295) in a real property transaction, and includes a person who is licensed as a real estate broker under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code, and under whose license a listing is executed or an offer to purchase is obtained.

(b)“Associate licensee” means a person who is licensed as a real estate broker or salesperson under Chapter 3 (commencing with Section 10130) of Part 1 of Division 4 of the Business and Professions Code and who is either licensed under a broker or has entered into a written contract with a broker to act as the broker’s agent in connection with acts requiring a real estate license and to function under the broker’s supervision in the capacity of an associate licensee.

The agent in the real property transaction bears responsibility for his or her associate licensees who perform as agents of the agent. When an associate licensee owes a duty to any principal, or to any buyer or seller who is not a principal, in a real property transaction, that duty is equivalent to the duty owed to that party by the broker for whom the associate licensee functions.

(c)“Buyer” means a transferee in a real property transaction, and includes a person who executes an offer to purchase real property from a seller through an agent, or who seeks the services of an agent in more than a casual, transitory, or preliminary manner, with the object of entering into a real property transaction. “Buyer” includes vendee or lessee.

(d)“Commercial real property” means all real property in the state, except single-family residential real property, dwelling units made subject to Chapter 2 (commencing with Section 1940) of Title 5, mobilehomes, as defined in Section 798.3, or recreational vehicles, as defined in Section 799.29.

(e)“Dual agent” means an agent acting, either directly or through an associate licensee, as agent for both the seller and the buyer in a real property transaction.

(f)“Listing agreement” means a contract between an owner of real property and an agent, by which the agent has been authorized to sell the real property or to find or obtain a buyer.

(g)“Listing agent” means a person who has obtained a listing of real property to act as an agent for compensation.

(h)“Listing price” is the amount expressed in dollars specified in the listing for which the seller is willing to sell the real property through the listing agent.

(i)“Offering price” is the amount expressed in dollars specified in an offer to purchase for which the buyer is willing to buy the real property.

(j)“Offer to purchase” means a written contract executed by a buyer acting through a selling agent that becomes the contract for the sale of the real property upon acceptance by the seller.

(k)“Real property” means any estate specified by subdivision (1) or (2) of Section 761 in property that constitutes or is improved with one to four dwelling units, any commercial real property, any leasehold in these types of property exceeding one year’s duration, and mobilehomes, when offered for sale or sold through an agent pursuant to the authority contained in Section 10131.6 of the Business and Professions Code.

(l)“Real property transaction” means a transaction for the sale of real property in which an agent is employed by one or more of the principals to act in that transaction, and includes a listing or an offer to purchase.

(m)“Sell,” “sale,” or “sold” refers to a transaction for the transfer of real property from the seller to the buyer, and includes exchanges of real property between the seller and buyer, transactions for the creation of a real property sales contract within the meaning of Section 2985, and transactions for the creation of a leasehold exceeding one year’s duration.

(n)“Seller” means the transferor in a real property transaction, and includes an owner who lists real property with an agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. “Seller” includes both a vendor and a lessor.

(o)“Selling agent” means a listing agent who acts alone, or an agent who acts in cooperation with a listing agent, and who sells or finds and obtains a buyer for the real property, or an agent who locates property for a buyer or who finds a buyer for a property for which no listing exists and presents an offer to purchase to the seller.

(p)“Subagent” means a person to whom an agent delegates agency powers as provided in Article 5 (commencing with Section 2349) of Chapter 1 of Title 9. However, “subagent” does not include an associate licensee who is acting under the supervision of an agent in a real property transaction.

SEC. 38.

 Section 2079.13 is added to the Civil Code, to read:

2079.13.
 (a) For purposes of this article, the definitions in Chapter 1 (commencing with Section 10000) of Part 1 of Division 4 of the Business and Professions Code shall apply.
(b) Notwithstanding subdivision (a), for the purposes of Sections 2079 to 2079.6, inclusive, and Sections 2079.9 to 2079.24, inclusive, owners and managers of multifamily residential properties improved by more than four residential units are not “sellers” and a lease of that property does not constitute a “sale.”

SEC. 39.

 Section 2079.14 of the Civil Code is amended to read:

2079.14.
 Listing agents and selling agents A real estate licensee shall provide the seller and buyer in a real property transaction with a copy of the disclosure form specified in Section 2079.16, and, except as provided in subdivision (c), shall obtain a signed acknowledgment of receipt from that seller or buyer, except as provided in this section or Section 2079.15, as follows:
(a) The listing agent, seller’s licensee, if any, shall provide the disclosure form to the seller prior to entering into the listing agreement.

(b)The selling agent shall provide the disclosure form to the seller as soon as practicable prior to presenting the seller with an offer to purchase, unless the selling agent previously provided the seller with a copy of the disclosure form pursuant to subdivision (a).

(c)Where the selling agent does not deal on a face-to-face basis with the seller, the disclosure form prepared by the selling agent may be furnished to the seller (and acknowledgment of receipt obtained for the selling agent from the seller) by the listing agent, or the selling agent may deliver the disclosure form by certified mail addressed to the seller at his or her last known address, in which case no signed acknowledgment of receipt is required.

(d)

(b) The selling agent buyer’s licensee shall provide the disclosure form to the buyer as soon as practicable prior to execution of the buyer’s offer to purchase, except that if purchase. If the offer to purchase is not prepared by the selling agent, buyer’s licensee, the selling agent buyer’s licensee shall present the disclosure form to the buyer not later than the next business day after the selling agent receives receiving the offer to purchase from the buyer.

SEC. 40.

 Section 2079.15 of the Civil Code is amended to read:

2079.15.
 In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to Section 2079.14, the agent, real estate licensee, or an associate licensee acting for an agent, a real estate licensee, shall set forth, sign, and date a written declaration of the facts of the refusal.

SEC. 41.

 Section 2079.16 of the Civil Code is amended to read:

2079.16.
 The disclosure form required by Section 2079.14 shall have Sections 2079.13 to 2079.24, inclusive, excluding this section, printed on the back, and on the front of the disclosure form the following shall appear: contain at a minimum the following:

DISCLOSURE REGARDING
REAL ESTATE AGENCY RELATIONSHIP WITH LICENSEES
(As required by Section 2079.14 of the Civil Code)

When you enter into a discussion relationship with a real estate agent licensee regarding a real estate transaction, you should from the outset understand what type of agency relationship or representation you wish to have with the agent licensee in the transaction.

SELLER’S AGENT LICENSE

A Seller’s agent licensee under a listing agreement with the Seller acts as the agent licensee for the Seller only. A Seller’s agent or a subagent of that agent licensee has the following affirmative obligations:
To the Seller:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Seller.
To the Buyer and the Seller:
(a) Diligent exercise of reasonable skill and care in performance of the agent’s licensee’s duties.
(b) A duty of honest and fair dealing and good faith.
(c) A duty to disclose all facts known to the agent licensee materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties.

An agent is not obligated

A Seller’s licensee may have other listing agreements with other Sellers. The affirmative duties to the Buyer and Seller set forth above in (a), (b) and (c) do not obligate a licensee to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above. or from other clients. Confidential information includes, but is not limited to, facts relating to the party’s financial position, motivations, bargaining position, or other personal information that may impact price, such as that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.

BUYER’S AGENT LICENSEE

A selling agent

The Buyer’s licensee may also be providing services to other Buyers in regard to the same or different properties. A licensee can, with a the Buyer’s consent, agreement, agree to act as agent licensee for only the Buyer only. In these situations, the agent is not the Seller’s agent, even if by agreement the agent Buyer. The Buyer’s licensee may receive compensation for services rendered, either in full or in part from the Seller. An agent Seller, but that does not make the Buyer’s licensee the Seller’s licensee. A licensee acting only for a Buyer has the following affirmative obligations:
To the Buyer:
A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Buyer.
To the Buyer and the Seller:
(a) Diligent exercise of reasonable skill and care in performance of the agent’s licensee’s duties.
(b) A duty of honest and fair dealing and good faith.
(c) A duty to disclose all facts known to the agent real estate licensee materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the parties. An agent is not obligated
The affirmative duties to the Buyer and Seller set forth above in (a), (b) and (c) do not obligate a licensee to reveal to either party any confidential information obtained from the other party that does not involve the affirmative duties set forth above. or from other clients. Confidential information includes, but is not limited to, facts relating to the party’s financial position, motivations, bargaining position, or other personal information that may impact price, such as that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.

AGENT LICENSEE REPRESENTING BOTH SELLER AND BUYER

A real estate agent, licensee, either acting directly or through one or more associate licensees, can legally be the agent of represent both the Seller and the Buyer in a transaction, but only with the knowledge and consent of both the Seller and the Buyer.
In a dual agency broker or dual licensee situation, the agent has dual broker and dual licensee have the following affirmative obligations to both the Seller and the Buyer:
(a) A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either the Seller or the Buyer.
(b) Other duties to the Seller and the Buyer as stated above in their respective sections.
In representing both Seller and Buyer, the agent dual broker or dual licensee may not, without the express permission of the respective party, disclose to the other party that the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered. in that transaction any confidential information obtained from the other party that does not involve the affirmative duties set forth above in (a) and (b). Confidential information includes, but is not limited to, facts relating to the party’s financial position, motivations, bargaining position, or other personal information that may impact price such as the Seller will accept a price less than the listing price or that the Buyer will pay a price greater than the price offered.

CONSUMER RESPONSIBILITY

Once you have decided on the offer you wish to make or accept, you will receive a confirmation of the licensee relationship. Please pay attention to that confirmation to make sure you are comfortable with that relationship and it reflects your understanding of it.
The above duties of the agent licensee in a real estate transaction do not relieve a Seller or Buyer from the responsibility to protect his or her own interests. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. interests including reading all documents, reports, and disclosures. The Buyer has a duty to exercise reasonable care to protect himself or herself including obtaining and considering those facts which are known to or within the diligent attention and observation of the Buyer. You should carefully read all agreements to assure that they adequately express your understanding of the transaction. A real estate agent licensee is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent professional.

Throughout your real property transaction you may receive more than one disclosure form, depending upon the number of agents assisting in the transaction. The law requires each agent with whom you have more than a casual relationship to present you with this disclosure form. You should read its contents each time it is presented to you, considering the relationship between you and the real estate agent in your specific transaction.

This disclosure form includes the provisions of Sections 2079.13 to 2079.24, inclusive, of the Civil Code set forth on the reverse hereof. Read it carefully.

Agent Real Estate Broker(date)
Buyer/Seller(date)
(Signature)
Associate Licensee(date)
Buyer/Seller(date)
(Signature)
(Signature)

SEC. 42.

 Section 2079.17 of the Civil Code is amended to read:

2079.17.
 (a) As soon as practicable, the selling agent buyer’s licensee shall disclose to the buyer and seller whether the selling agent licensee is acting in the real property transaction exclusively as the buyer’s agent, exclusively as the seller’s agent, licensee, or as a dual agent licensee representing both the buyer and the seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller, the buyer, and the selling agent buyer’s licensee prior to or coincident with execution of that contract by the buyer and the seller, respectively.
(b) As soon as practicable, the listing agent seller’s licensee shall disclose to the seller whether the listing agent seller’s licensee is acting in the real property transaction exclusively as the seller’s agent, licensee, or as a dual agent broker representing both the buyer and seller. This relationship shall be confirmed in the contract to purchase and sell real property or in a separate writing executed or acknowledged by the seller and the listing agent seller’s licensee prior to or coincident with the execution of that contract by the seller.
(c) The confirmation required by subdivisions (a) and (b) shall be in the following form:

(Name of Listing Agent) is the agent of (check one):

[]the seller exclusively; or

[]both the buyer and seller.

(Name of Selling Agent if not the same as the Listing Agent)

is the agent of (check one):

[]the buyer exclusively; or

[]the seller exclusively; or

[]both the buyer and seller.

(Name of Seller’s Broker, Brokerage firm and license number) _____
is the broker of (check one):
[ ]the seller; or
[ ]both the buyer and seller. (dual broker)
(Name of Seller’s Licensee and license number) _____
is (check one):
[ ]is the Seller’s Licensee. (salesperson or broker associate)
[ ]is both the Buyer’s and Seller’s Licensee. (dual licensee)
_____ (Name of Buyer’s Broker, Brokerage firm and license number) _____
is the broker of (check one):
[ ]the buyer; or
[ ]both the buyer and seller. (dual broker)
(Name of Buyer’s Licensee and license number) _____
is (check one):
[ ]the Buyer’s Licensee. (salesperson or broker associate)
[ ]both the Buyer’s and Seller’s Licensee. (dual licensee)
(d) The disclosures and confirmation required by this section shall be in addition to the disclosure required by Section 2079.14. A licensee’s duty to provide disclosure and confirmation of representation in this section may be performed by a real estate salesperson or broker associate affiliated with that broker.

SEC. 43.

 Section 2079.18 of the Civil Code is repealed.
2079.18.

No selling agent in a real property transaction may act as an agent for the buyer only, when the selling agent is also acting as the listing agent in the transaction.

SEC. 44.

 Section 2079.19 of the Civil Code is amended to read:

2079.19.
 The payment of compensation or the obligation to pay compensation to an agent a real estate licensee by the seller or buyer is not necessarily determinative of a particular agency relationship between an agent a real estate licensee and the seller or buyer. Buyers and sellers may have a relationship with a real estate licensee established and governed by a written agreement or an agreement for services for licensed activity without an agency relationship. A listing agent seller’s licensee and a selling agent buyer’s licensee may agree to share any compensation or commission paid, or any right to any compensation or commission for which an obligation arises as the result of a real estate transaction, and the terms of any such agreement shall not necessarily be determinative of a particular relationship.

SEC. 45.

 Section 2079.20 of the Civil Code is amended to read:

2079.20.
 Nothing in this article prevents an agent a licensee from selecting, as a condition of the agent’s employment, selecting a specific form of agency relationship not specifically prohibited by this article if the requirements of Section 2079.14 and Section 2079.17 are complied with.

SEC. 46.

 Section 2079.21 of the Civil Code is repealed.
2079.21.

A dual agent shall not disclose to the buyer that the seller is willing to sell the property at a price less than the listing price, without the express written consent of the seller. A dual agent shall not disclose to the seller that the buyer is willing to pay a price greater than the offering price, without the express written consent of the buyer.

This section does not alter in any way the duty or responsibility of a dual agent to any principal with respect to confidential information other than price.

SEC. 47.

 Section 2079.21 is added to the Civil Code, to read:

2079.21.
 A dual licensee may not, without the express permission of a client, disclose to the other client any confidential information obtained from the other client that does not involve the affirmative duties set forth above. Confidential information includes, but is not limited to, facts relating to the client’s financial position, motivations, bargaining position, or other personal information that may impact price such as the Seller will accept a price less than the listing price or that the buyer will pay a price greater than the price offered.

SEC. 48.

 Section 2079.22 of the Civil Code is amended to read:

2079.22.
 Nothing in this article precludes a listing agent seller’s licensee from also being a selling agent, and the combination of these functions in one agent does not, of itself, make that agent a dual agent. buyer’s licensee. If a seller or buyer in a transaction chooses to not be represented by a licensee, that does not, of itself, make that licensee a dual licensee.

SEC. 49.

 Section 2079.23 of the Civil Code is amended to read:

2079.23.
 (a) A contract between the principal and agent real estate licensee may be modified or altered to change the agency relationship at any time before the performance of the act which is the object of the agency licensee services with the written consent of the parties to the agency relationship.
(b) A lender or an auction company retained by a lender to control aspects of a transaction of real property subject to this part, including validating the sales price, shall not require, as a condition of receiving the lender’s approval of the transaction, the homeowner or listing agent any licensee to defend or indemnify the lender or auction company from any liability alleged to result from the actions of the lender or auction company. Any clause, provision, covenant, or agreement purporting to impose an obligation to defend or indemnify a lender or an auction company in violation of this subdivision is against public policy, void, and unenforceable.

SEC. 50.

 Section 2079.24 of the Civil Code is amended to read:

2079.24.
 Nothing in this article shall be construed to either diminish the duty of disclosure owed to buyers and sellers by agents and licensees including their associate licensees, subagents, broker associates, salespersons, and employees or to relieve agents and licensees, including their associate licensees, subagents, broker associates, salespersons, and employees from liability for their conduct in connection with acts governed by this article or for any breach of a fiduciary duty or a duty of disclosure. article.

SEC. 51.

 This act shall not become operative unless ____ of the 2017–18 Regular Session, relating to real estate, is enacted and becomes effective on January 1, 2018.