A seller's natural hazard disclosure statement does not reach the buyer until after the buyer has already signed the purchase offer. Under California law, what is the buyer's remedy?
Correct Answer
A) The buyer may terminate the offer within three days of personal delivery of the disclosure
Civil Code §1103.3 gives the buyer a termination right when a natural hazard disclosure, or a material amendment to one, is delivered after the buyer has executed an offer to purchase. The buyer terminates by written notice to the seller or the seller's agent within three days after personal delivery, or within five days after delivery by mail or as an electronic record. The clock runs from delivery of the disclosure, not from the closing date. Civil Code §1103.13 adds that no transfer is invalidated solely because someone failed to comply with the article, and that a person who willfully or negligently fails to perform a duty under it is liable for the buyer's actual damages.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An as-is clause in a real estate contract states that the buyer accepts the property in its current condition without requiring the seller to make any repairs. However, an as-is sale does NOT eliminate the seller's obligation to disclose known defects.
Asbestos disclosure involves informing buyers about the presence of asbestos-containing materials (ACMs) in a property. Asbestos was commonly used in construction materials before 1980 and poses health risks when fibers become airborne.
Violating fair housing laws can lead to significant penalties, including fines, civil liability, and professional discipline.
More Practice Of Real Estate Disclosures Questions
Under California law, a real estate agent owes a duty of honest and fair dealing to all parties in a transaction, not only to the agent's own client. Which provision most directly establishes this duty?
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A California-licensed salesperson uses the title 'Real Estate Consultant' on business cards and marketing materials without holding any special certification or designation. Under DRE regulations, this practice is:
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Most common business structure for one individual:
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- → At a DRE administrative disciplinary hearing in California, what standard of proof must the Department meet to sustain a finding against a licensee?
- → The Transfer Disclosure Statement requires sellers to disclose various known property conditions under California Civil Code §1102 et seq. All of the following must be disclosed on the TDS EXCEPT:
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