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THE LAWS: CALIFORNIA REAL ESTATE DISCLOSURES

March 18, 2022

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What Are My Disclosure Obligations When Selling a Home in Santa Barbara?

The front of a luxury Montecito with blue sky in the background and lush landscaping home that sold quickly in part due to the sellers taking care of California Real Estate disclosures

Even in our current HOT real estate market, every California home seller, including my clients who contracted me to sell their Breathtaking Ocean View Montecito Retreat pictured above, must familiarize themselves with California real estate disclosures laws. California Civil Code Section 1102 requires its residential property sellers to disclose, in writing, details about the property they list. Put simply, California home sellers have a legal responsibility to be open about a property's condition and can be sued for hiding problems or defects. 

A chef's kitchen with floor to ceiling windows that look out to the ocean

Protection for both Sellers and Buyers

California real estate disclosures are designed to protect both buyers and sellers. To comply with the law, many California sellers choose to hire an inspector to evaluate their property and prepare a report before listing. Disclosures give sellers a heads-up about home defects and allows them to make repairs or adjust the purchase price accordingly. Plus, in hot markets, it increases the chances that buyers will feel comfortable bidding high and waiving the inspection contingency. (The sale of this Ocean View Retreat went smoothly due, in part, to the sellers taking care of this step ahead of time.)

An outside patio at a luxury home complete with fireplace and comfy furniture

I get asked all the time about California Disclosure Laws from both sellers and buyers. And while I’m not a real estate attorney, here is the basic information every seller needs to know:

  1. Who Makes Seller Disclosures?
    As a general rule, all sellers of residential real estate property containing one to four units in California must complete and provide written disclosures to the buyer, with few exceptions. Certain Trusts are exempt form these disclosure requirements.

  2. When Must Sellers Provide Disclosure Information? Some California sellers will line up all disclosures, inspection reports, and other paperwork prior to listing their property, so that everything is ready for serious offers to be accepted. Other sellers will make a copy of the disclosures available within a day or two of their listing going public. Some wait for buyers to put in an offer before providing the disclosures, with the option for the buyer to back out or renegotiate if the disclosures bring anything unexpected to light.

    The deadline for when a seller needs to provide disclosures to a prospective buyer is detailed in the Residential Purchase Agreement and varies between 3-7 days depending on how quickly escrow may be closing. As a general rule I say it’s best to do it as soon as possible. Keep in mind, if you do not give the required disclosures to the buyer by the time the two of you have signed the purchase agreement, then the buyer has the option to terminate the deal. And who wants that to happen?

  3. Standard Disclosure Forms
    California's seller disclosure requirements are very strict and thorough. The standard form, called the "Transfer Disclosure Statement" (TDS), can be obtained from any real estate agent. There's also a draft online from the California Association of Realtors.

    The TDS form covers a broad range of topics, from structural information about your home, such as a leaky roof, to whether any deaths occurred on the property in the last three years. You will need to include information about all appliances in the home, including which are included in the sale as well as whether they are operational. You will also need to disclose any room additions, damage, or neighborhood noise problems.

    Plus, buyers in California generally request an additional disclosure form called the Natural Hazard Disclosure Report/Statement, before a home sale. In addition, sellers need to certify that they've complied with various California laws like those regarding smoke detectors, as well as bracing, anchoring or strapping water heaters to keep them from falling or moving horizontally in an earthquake. Your real estate agent can help you with those forms, too.

Remember, just because you disclose an issue doesn't mean you are obligated to repair or correct it. But when selling a home in the Golden State, don’t forget to complete your California Real Estate disclosures. If that’s you and the home you want to sell is located in Montecito, Hope Ranch or any of Santa Barbara's upscale communities, please call me at (805) 886-9378 or email me at Cristal@montecito-estate.com. I can also help buyers find their dream home in the area.

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Client Reviews

“It was an emotional experience selling our mother’s home in Montecito that we all loved so much but Cristal made the process easier on our whole family by guiding us through the transaction every step of the way. She knows the market so well and everything she recommended was on point including the asking price, painting, and staging the home, which looked beautiful and helped the buyer envision her new home. We sold it the first day it hit the market with an offer above asking! Cristal did an incredible job communicating with us and the buyer to ensure that the transaction would run smoothly. We highly recommend using Cristal, she was a pleasure to work with! ”

- J & A

“Cristal is a pleasure to work with! Her knowledge of the local real estate market coupled with her amazing listening skills resulted in her showing us an array of homes that were all excellent choices. Her low-pressure patient attitude made us feel extremely comfortable with the whole process. I cannot recommend her highly enough.”

- M.F.

“Cristal Clarke is #1 in her field - and you don't become #1 by luck. Cristal works harder, and longer, and with more charm and patience than any real estate agent I have ever worked with in the past; her calendar has no weekend, her days have no clocks, her only concern is selling your property as soon as possible and for the best price on the market. Am I a fan? You bet!”

- P.B.

“We have used Cristal now several times and cannot express how grateful we are for her expertise, dedication, and unwavering support throughout the entire home-buying process. Cristal is knowledgeable, patient and attentive. Her attention to detail is remarkable, and she consistently went above and beyond to provide us with all the information and resources we needed to make informed decisions. Cristal is a skillful negotiator and advocate. She can navigate complex negotiations with professionalism and grace and felt like a true partner to us in the home-buying process. Cristal has a genuine passion for real estate and a deep commitment to her clients' satisfaction. I cannot speak highly enough of Cristal and her exceptional service. She is a true expert in her field and her dedication to excellence, combined with unwavering support is the reason we choose to work with her for all our real estate buying needs.”

- T.C.

“Cristal is a top-notch realtor who sold my home before it ever went on the market. I had two competing offers that enabled me to get top dollar for my home. Not only is Cristal superb but her team is extraordinary. I cannot say enough about Cristal and her team. They are simply phenomenal, the consummate professionals, who took care of every possible detail, making the sale and transition period, smooth from our end. They are also lovely, caring people, who knew all the right professionals, to get the job done. Thank you, everyone!”

- D.R.

“I could list lots of cool adjectives to describe Cristal. All good by the way. But, that is not why I or anyone should hire Cristal. My reason for hiring her, which proved to be correct, is very simple. She got the job done. And, she does it time and time again and with zero issues. And, that is why she is one of the top agents in the country. End of subject. ”

- M.A.

“Working with Cristal was a complete pleasure. Cristal was extremely patient with us as we evaluated nearly 2 dozen homes over a span of 2 years. Her knowledge of the market is unmatched. Cristal provided us with exceptional counsel as we evaluated opportunities and negotiated pricing. The closing process was handled thoroughly and efficiently. We could not be happier with our purchase and even more happy to now call Cristal our friend.”

- D.K.

“Cristal Clarke has conducted numerous real estate transactions for me beginning 13 years ago with the purchase of a Lemon Ranch. She has handled both large and small purchases and sales with equal dedication. As a negotiator, you can’t find anyone better. Her transactions are always conducted in the most appropriate and professional manner. Cristal has considerable knowledge of the Santa Barbara market.”

- S.N. Decker Ph.D.

“Living in Europe, we were to say the least, unaccustomed to the nuances of Real Estate acquisition in California and Cristal steered us through the process with absolute professionalism and personal attention to detail at every turn. Her in-depth knowledge of the market place combined with enthusiasm and drive was the only reason we secured the property of our dreams and will be forever grateful. If you are looking for personal discrete and private representation of the highest quality we suggest you look no further than Cristal Clarke.”

- Johan and Paula van den Berg

“Cristal is very straightforward, cheerful, helpful, professional and trustworthy….we felt very lucky to work with her.”

- John and Lacey Williams

“After considering our many choices, we are grateful it was Cristal Clarke of Sotheby’s International who represented the sale of our Montecito cottage. We are familiar with Cristal’s reputation of hard work and dedication to clients, but it was her attention to detail that made our experience so positive. She offered suggestions for staging the property, worked in harmony with potential buyers and was even able to secure back up offers. The sale of our cottage was completed much sooner than we expected, due in great part to Cristal’s professional skills and support. We highly recommend Cristal as a first choice for anyone needing representation with real estate.”

- Michael & Nancy Lee

“Our experience in working with Cristal Clarke resulted in the successful and discrete acquisition of a property which was not yet on the open market. Her knowledge of the Montecito/Santa Barbara area and vast expertise blended with her passion for real estate and architecture, provided us with the very highest level of professionalism and personalized services. Cristal exhibited a rare combination of excellent communications, attention to detail, creativity and patience.”

- Richard and Catherine Frinier

“Cristal really breaks the mold. She knows every nook and cranny of this real estate market, understands value, and follows up on everything, all the time. She was incredibly patient with our two year quest to find the perfect house. Every house hunting trip from across the country was well planned, and our time was never wasted. On top of her professionalism and expertise, she is delightful to spend time with. We are thrilled with the home we purchased, and grateful to Cristal for so wisely advising us through this process, right through to the close and beyond.”

- Laurie Siegel

“We met Cristal first in the course of renting a winter home (for three years), then buying a house using her as our agent. She was amazingly good at listening to our wants and showing us homes that fit our needs. Her mastery of the paperwork was perfect. Most importantly, there was never a situation where we doubted her straightforwardness or integrity. If we do another real estate transaction in Montecito (which I doubt, we’re happy with what we purchased), without question we’d use Cristal again.”

- Ken Saffir

“Susan and I just want to thank you for your efforts in the sale of our home. You are really quite amazing. Your competence, persistence, optimism and humor made the entire process effortless. Every problem that arose, you somehow fixed; any obstacle, you overcame. We have bought and sold many homes. It has never been such a painless and enjoyable process!”

- Michael & Susan Marquart

“A little something about “our” realtor, Cristal Clarke. My wife and I came to Santa Barbara about fifteen years ago looking for a seasonal home from which to enjoy the weather and amenities of the central coast. Being in the real estate business myself I was familiar with agents and brokers so entered the market with open eyes. We “flipped” a few houses in the early years, dealing with various agents and finally ended up in Montecito. That’s when good fortune put us together with Cristal. To say we were impressed is to put it mildly. Cristal really knows the market. She is familiar with the area, its history and trends. When we have questions about a particular property she either has the answers immediately or gets back to us by phone or email. There is no waiting or wondering with Cristal. She is an agent who is “on top of it.” Her recommendations as to price points, contractors, inspectors and title agents have proven to be exceptional, showing great insight and the highest professional standards. We consider ourselves exceedingly fortunate to say that Cristal Clarke is our realtor and would recommend her services to any serious buyer or seller.”

- Rob & Judi Kelch