Tuesday, February 28, 2012

REO Sellers of Homes Required to Provide Written Disclosures to Buyers

BANK OWNED PROPERTIES 

REO buyers of homes in California should make sure that REO lender/sellers provide all disclosures that are required by law.

REO lender/sellers in California are in some situations exempt from property disclosures to buyers based upon theory that they are not familiar with the properties acquired through foreclosure. orange county real estate

However, REO sellers of residential properties (one to 4 units) in California are required to provide some disclosures to buyers.

REO SELLER DISCLOSURE OBLIGATIONS

REO lender/sellers are not obligated by law to be aware of all property defects, such as foundation cracks, water leaks, plumbing problems, leaky roofs, need for repairs, and they usually don't provide disclosures to buyers of such unknown challenges.

REO property buyers should always hire their own professional property inspections, get complete reports, and be satisfied with information about condition of the property.

California Civil Code 2079 et. seq. generally provides guideline for seller disclosures of material facts required to be given to buyers of one to four residential units.

Lender/sellers in California are required to provide the following disclosures to buyers for REO properties for residential properties one to four units: 

  • Agency disclosure statement - California Civil Code 2079.14 
  • Agent's visual inspection disclosure - Civil Code 2079
  • Combined hazards booklet - recommended but not required
  • Carbon monoxide detection devices - disclosure recommended - devices are required at such properties
  • Condominium or other planned unit development documents - Civil Code 1368(a) 
  • Flood insurance or possible disaster relief assistance - 42 U.S. Code 5154(a)
  • Lead based paint disclosure - 42 U.S. Code 4852(d)
  • Material facts - required disclosure - seller form SPQ not required by law
  • Megan's law disclosure - Civil Code 2079.10
  • Mello-Roos assessments - recommended and not required
  • Meth Lab cleanup - CA Health and Safety Code 25400.28 
  • Natural Hazard Disclosure Statement - recommended but not required
  • REO Advisory - recommended but not required
  • Seller's affidavit of non-foreign status - recommended but not required
  • Smoke detector statement of compliance - CA Health and Safety Code 13113.8(b)
  • Water conserving fixtures - CA SB 407 - required for properties built prior to January 1, 1994
  • Water heater bracing - CA Health and Safety Code 19211 
For detail of information on seller disclosures required for lender owned REO properties in California - see the California Associations of REALTORs seller disclosure chart.

CA REAL ESTATE LAW

 
  • 3,229 Orange County CA properties have resold this year so far (January 1 to February 27, 2012) - with average sold price of $502,130.
  • 563 of those resold Orange County properties (17.4 percent of market) were REO lender owned after foreclosure - average resold price of $358,439.
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    Source of some information the California Association of REALTORs.  Other information is from CRMLS and includes homes resold in Orange County, not including that for new homes for sale or sold, not including those sold at trustee auctions after foreclosure, otherwise includes those listed and sold by all agents and brokers.  This is for information only and not the providing of legal services.   

    Professional REALTOR® agent representation and help for property owner/sellers, private trust estate representatives, estate administrators and executors, probate and trust attorneys, estate planners, income tax professionals, public guardians, fiduciaries, investor group managers, bankers, and individuals, with listing and sale of properties at Orange County CA real estate

    Posted via email from Explore OC Homes

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