WooHoo! CAR has released their 2011 disclosure requirements. Here
are several items I'm paying attention to for this year;
Smoke Detector and Water Heater Statement of Compliance
Hooray for California Association of REALTORS® for incorporating the smoke detector and water heater statements of compliance into the Real Estate Transfer Disclosure! As a result CAR has indicated if the RETDS is used, a separate disclosure is not necessary. This means one less disclosure to track and obtain signatures!
I have just one teeny, tiny concern though. For the newer real estate agent, they may not know what the compliance law is and fail to ensure a working smoke detector(s) in the house and the water heater is properly strapped prior to close. The separate disclosure describes this in detail.
If you are confident you won't forget this mandatory compliance for California properties, then by all means eliminate the separate disclosure.
Carbon Monoxide
New law effective July 1st requires existing California Single Family homes to have a Carbon Monoxide detection device installed. Per CAR, no additional disclosure is necessary as it's already addressed on page 1 of the Real Estate Transfer Disclosure Statement. Again, let's hope agents remember to confirm this prior to close.
HERS
The Home Energy Rating System Program booklet is now a requirement and describes whole house home energy rating services and benefits, opportunities to invest in energy efficiency improvements a the time-of-sale plus more! Here's a link to download the booklet for your office http://www.energy.ca.gov/HERS/booklet.html
The bummer is it's NOT yet incorporated into our earthquake/lead/mold booklet and receipt. So a separate acknowledgement of receipt will need to be generated.
New 2011 Disclosure Charts and Summary Chart for Disclosure requirements
Remember to download a copy of the new 2011 disclosure charts from CAR.org. These disclosures are MANDATORY they be incorporated into certain transactions.
These charts help you to identify what to incorporate for REO/Short Sale/Probate/Land etc.
I always save a copy on my desktop so it's available any time I have a questions about which disclosure to use.
Be sure to also ask your Broker for their office disclosure requirement as well!
I found a VERY cool disclosure chart which further clarifies when certain disclosures should be used.
Check out CAR.ORG's website. Go to Legal/2011 Disclosure Charts/Summary Disclosure Chart
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