Disclosure Bills Examined for Title Impact

Senate Bill 237 (Grayson) would add disclosure requirements for sellers of single-family residential properties that were rebuilt after the property was destroyed by an event for which a state of emergency or local emergency was declared, and for which a certificate of occupancy was issued on or after January 1, 2025.

The disclosures include the name and license numbers of any contractors that performed work on the property, the permits obtained to rebuild the property, and the names and license numbers of any third parties that performed work on the property that requires a license.

Senate Bill 410 (Grayson) would add to the list of documents that a separate interest owner in a common interest development is required to provide to a prospective purchaser by required the inclusion of the results of an inspection of any exterior elevated elements.

As previously reported by CLTA, Assembly Bill 455 (Ortega), which would make it the sole responsibility of a seller of a single-family residential property who has actual knowledge of the existence of any residue from smoking or vaping tobacco or nicotine products, or any history of occupants smoking or vaping tobacco or nicotine products on the property, to disclose such knowledge to the buyer in writing.

Though CLTA has conducted initial reviews of each bill and found that under existing law a transfer of title is likely not invalidated for failure to comply with any of the proposed disclosure requirements, CLTA members are encouraged to conduct an independent analysis should any of the bills be enacted.