Basic Listing Paperwork:
- Agency Disclosure - The first disclosure is from broker to client. The Agency Disclosure explains the role of the seller's agent, the buyer's agent and what happens when there is dual agency. Most clients will see and sign this form at least twice in the course of a California real estate transaction.
- Exclusive Right to Sell Agreement - Also known as the listing agreement, this form is our authorization to represent you in the sale of your property. It will show the address or legal description of your property, the asking price, and the terms of the listing. Most importantly, it authorizes us to market your property.
- Seller's Advisory - This form serves as a reminder of some of the considerations, duties and responsibilities a property owner has when selling a property.
Disclosures:
The disclosure paperwork is designed primarily to protect the principals (seller and buyer) in the transaction. The majority of the disclosure paperwork serves to assist the seller in fulfilling mandatory disclosure requirements imposed by the Federal Government and by the State of California, and to provide the buyer with such disclosures in standard, easy-to-understand formats.
With a few exceptions*, sellers are required to provide the following disclosures:
- Real Estate Transfer Disclosure Statement - Form prescribed by California Civil Code 1102.6 which must be supplied by the seller to the buyer of a property consisting one to four residential units (including a stock cooperative). It provides a checklist of items the property has with space for the seller to indicate the condition of the items. It also contains specific questions regarding the seller's knowledge of specific conditions that could affect the property.
- Smoke Detector Statement of Compliance - Required to be provided by seller to buyer as confirmation that the residential property being sold has operable smoke detectors installed in compliance with law and regulation.
- Water Heater Statement of Compliance - The seller's written confirmation that the water heater has been, or prior to close of escrow, will be properly secured to code to resist falling during an earthquake.
- Residential Earthquake Hazards Report - A list of questions which must be answered by the seller of a property built before 1960 regarding earthquake weaknesses of the property.
- Lead-Based Paint and Lead-Based Paint Hazards Disclosure - A Federally required disclosure form that must be provided by the seller of a property built before 1978.
- Homeowners Guide to Earthquake Safety and Environmental Hazards - Booklet which the seller is required to give to the buyer. Current editions of this booklet contain a chapter which fulfills the requirement that a buyer be given the Federal pamphlet "Protect Your Family from Lead."
- Natural Hazard Disclosures - Sellers normally provide these mandatory disclosures through a Natural Hazard Disclosure service since they are quite technical. These disclosures include the property's flood hazard area rating, dam inundation susceptibility, seismic hazard and earthquake fault zones and geological hazard susceptibility, high fire severity zone rating, etc.
- Seller's Affidavit of Non-Foreign Status and/or California Residency - Seller statement of information in compliance with the Foreign Investment in Real Property Tax Act (FIRPTA) and California Non-Resident Withholding Law.
- Database Disclosure Regarding Registered Sex Offenders - A notice to buyers as to how they can obtain information on the presence of a registered sex offender in the neighborhood (this disclosure is a result of "Megan's Law") Most transactions no longer require this as a separate form since the language is now printed in the California Association of Realtors Purchase Agreement.
- Mello Roos Zone Disclosure - Required to be provided by the seller if the property is located in a Mello Roos Zone.
- Other Disclosures - Depending on the local jurisdiction and its related issues, additional disclosures may be required.
* A few of the above disclosure documents may not be required in certain circumstances, such as when a property is being sold through probate or by a lender or trustee following foreclosure.
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