Real Estate Transactions

All C.A.R. purchase agreements include an “as is” clause, which states that the property is being sold in its current condition. The RPA-CA, for instance, contains this exact language in paragraph 11.

Is it necessary for the seller to add extra language to ensure the property is sold “as is”? No, the “as is” clause in the C.A.R. contracts is sufficient.

Does the “as is” clause eliminate the seller’s obligation to make any repairs?

No, under the C.A.R. contracts, the seller must maintain the property’s condition as of the acceptance date. If the property is damaged during escrow, and the buyer is not responsible for the damage, the seller will likely have to make the necessary repairs before closing. Furthermore, if there is a specific statement in the agreement, the …

Introduction:

When it comes to selling a residential property with one to four units, the seller has a legal obligation to disclose known material information affecting the value or desirability of the property. This is typically done through a Real Estate Transfer Disclosure Statement (C.A.R. Form TDS) and a Seller Property Questionnaire (C.A.R. Form SPQ). Additionally, a natural hazards (NHD) report can be ordered from a third-party company to identify any hazards in the property’s location. In this article, we’ll discuss the duty to disclose, how to modify a disclosure, and the buyer’s right to rescind if the disclosures are made after an offer has been made.

Duty to Disclose:

As mentioned, the seller of a residential property has a legal obligation to disclose known material information that could affect …