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What is the new disclosure requirement law in California?

On Behalf of | Mar 14, 2023 | Real Estate Law & Litigation

Sometimes buried within the agreements signed during the sale of a property and considered a formality, disclosure requirements demand serious attention. The longer time elapses, the more likely that not only circumstances for the parties may change but also the laws that govern them. A new law clarifying requirements for disclosures went into effect at the beginning of this year, but what does it mean?

Why was the change needed?

The provisions of Assembly Bill 2960 provide that the disclosure requirements in effect on the date parties entered into an agreement supersede any changes concerning disclosure subsequent to that date. A seller need not disclose to a buyer a disclosure requirement enacted in 2023 for the sale of a home in 2022, for example. Purchase agreements fall within the scope of the law.

How does this change any current obligations for buyer and seller?

Both seller and buyer, in addition to real estate agents, still must fulfill obligations in honesty and good faith required where applicable under law. These include, but are not limited to:

  • Condition of Property Disclosure Statement
  • Residential Earthquake Hazards Report
  • Lead-based Paint Disclosure
  • Natural Hazard Disclosure Statement

The fluctuating real estate markets often receive the focus, but new laws can present risks, even to the most conscientious. Attention to detail in matters concerning the sale of property can make the difference between a smooth transition to a new home and the financial cost of legal liability. An attorney who understands the difference can offer guidance.