I had another case where the sellers had inherited the property, and their realtor thought they would be exempt from having to disclose. But all the law states is that they don’t have to use our form:
Under California Law, whether or not a seller is exempt from providing a Real Estate Transfer Disclosure Statement (“TDS”) based on Civil Code Section 1102 and the Seller Property Questionnaire (“SPQ”) pursuant to the Purchase Agreement, they are nonetheless required to make full disclosure of any known defects or material issues that may influence the Buyer’s decision to purchase the property or the price they are willing to pay in other words would the information impact the value or desirability in the eyes of the buyer.
The obligation to disclose known material defects or matters impacting the value or use of the property would apply to all exempt transactions such as Real Estate Owned (“REO”), Bankruptcy, Probate, Trust Sales and the like. Such disclosures may be made on the SPQ or a word document, the key is disclose, disclose, disclose! As licensees, we are also obligated to disclose regardless of any seller exemptions.
Make it easy on yourself – just use our disclosure form for all transactions.