Section C.16. of the California Real Estate Transfer Disclosure Statement (TDS) now asks whether the Seller is aware of “Any lawsuits by or against the Seller threatening to or affecting this real property, claims for damages by the Seller pursuant to Section 910 or 914 threatening to or affecting this real property, claims for breach of warranty pursuant to Section 900 threatening to or affecting this real property, or claims for breach of an enhanced protection agreement pursuant to Section 903 threatening to or affecting this real property, including any lawsuits or claims for damages pursuant to Section 910 or 914 alleging a defect or deficiency in this real property or ‘common areas’ (facilities such as pools, tennis courts, walkways, or other areas co-owned in undivided interest with others).” (bolded portions effective as of July 1, 2014).
If the Seller is aware of such lawsuits or claims, the Seller must provide a further explanation in the TDS sufficient to advise the Buyer of the circumstances surrounding the claims or lawsuits.
Sell with Protection
Have an attorney-broker at Esquire Real Estate sell your real estate. Sell with protection. Esquire Real Estate is available to act as the sales broker as well as assist and advise you regarding the Seller’s obligations for disclosure in the TDS, the relevant claims or lawsuits referenced in the TDS, and the many other disclosure obligations in selling or buying California real estate.