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AB-1375 Real property sales: disclosures.(2021-2022)

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Date Published: 02/19/2021 09:00 PM
AB1375:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1375


Introduced by Assembly Member Bloom

February 19, 2021


An act to amend Section 1102.3 of the Civil Code, relating to real property.


LEGISLATIVE COUNSEL'S DIGEST


AB 1375, as introduced, Bloom. Real property sales: disclosures.
Existing law requires a seller of a single-family residence to make specified written disclosures to a prospective buyer. Existing law requires those disclosures to be delivered to the prospective buyer, in the case of a sale, as soon as practicable before transfer of title, or in the case of sale by a real property sales contract or by a lease together with an option to purchase, as soon as practicable before execution of the contract.
Existing law, if any disclosure or material amendment of any disclosure is delivered after the execution of an offer to purchase, permits the prospective buyer to terminate the offer within 3 days after delivery of the disclosure or material amendment in person, or 5 days after delivery of the disclosure or material amendment by deposit in the mail or by electronic record.
This bill would extend the timeframe for a prospective buyer to terminate an offer to 5 days after the delivery of the disclosure or material amendment in person, or 7 days after the delivery of the disclosure or material amendment by deposit in the mail or by electronic record.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

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


SECTION 1.

 Section 1102.3 of the Civil Code is amended to read:

1102.3.
 The seller of any single-family real property subject to this article shall deliver to the prospective 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 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 respect to any sale subject to subdivision (a) or (b), the seller shall indicate compliance with this article on the real property sales contract, the lease, or any addendum attached thereto or on a separate document.

If

(d) 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 prospective buyer shall have three five days after delivery in person, five seven days after delivery by deposit in the mail, or five seven days after delivery of an electronic record in transactions where the parties have agreed to conduct the transaction by electronic means, pursuant to provisions of the Uniform Electronic Transactions Act (Title 2.5 (commencing with Section 1633.1) of Part 2 of Division 3), to terminate the offer by delivery of a written notice of termination to the seller or the seller’s agent. The period of time the prospective buyer has in which to terminate the offer commences when Sections I and II, and, if the seller is represented by an agent in the transaction, then also Section III, in the form described in Section 1102.6, are completed and delivered to the buyer or buyer’s agent. A real estate agent may complete their own portion of the required disclosure by providing all of the information on the agent’s inspection disclosure set forth in Section 1102.6.