An investor purchases a four-unit apartment building in San Jose, California, from a bank that acquired the property through foreclosure. The investor asks the bank for a Transfer Disclosure Statement. How should the bank respond?
Correct Answer
A) Inform the investor that the sale is exempt from the TDS requirement under Cal. Civil Code §1102.2
Under California Civil Code §1102.2, foreclosure sales by lenders are exempt from the TDS requirement. The bank acquired the property through foreclosure and is selling as a lender, which falls under the statutory exemption.
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Previous Question
Under California law, both the listing agent and the buyer's agent have independent duties to conduct a reasonably competent and diligent visual inspection of a residential property. Which of the following forms is used in California real estate practice to document the findings of that inspection?
Next Question
Helen is selling her home in Modesto, California. She tells her listing agent that the home's central air conditioning unit stopped working six months ago, but she has not repaired it. Under the TDS requirements, what must Helen do?