SECTIONS 1103-1103.14

1103.  (a) Except as provided in Section 1103.1, this articleapplies to the transfer by sale, exchange, installment land salecontract, as defined in Section 2985, lease with an option topurchase, any other option to purchase, or ground lease coupled withimprovements, of any real property described in subdivision (c), orresidential stock cooperative, improved with or consisting of notless than one nor more than four dwelling units. (b) Except as provided in Section 1103.1, this article shall applyto a resale transaction entered into on or after January 1, 2000,for a manufactured home, as defined in Section 18007 of the Healthand Safety Code, that is classified as personal property intended foruse as a residence, or a mobilehome, as defined in Section 18008 ofthe Health and Safety Code, that is classified as personal propertyintended for use as a residence, if the real property on which themanufactured home or mobilehome is located is real property describedin subdivision (c). (c) This article shall apply to the transactions described insubdivisions (a) and (b) only if the transferor or his or her agentis required by one or more of the following to disclose the property's location within a hazard zone: (1) A person who is acting as an agent for a transferor of realproperty that is located within a special flood hazard area (any typeZone "A" or "V") designated by the Federal Emergency ManagementAgency, or the transferor if he or she is acting without an agent,shall disclose to any prospective transferee the fact that theproperty is located within a special flood hazard area if either: (A) The transferor, or the transferor's agent, has actualknowledge that the property is within a special flood hazard area. (B) The local jurisdiction has compiled a list, by parcel, ofproperties that are within the special flood hazard area and a noticehas been posted at the offices of the county recorder, countyassessor, and county planning agency that identifies the location ofthe parcel list. (2) A person who is acting as an agent for a transferor of realproperty that is located within an area of potential floodingdesignated pursuant to Section 8589.5 of the Government Code, or thetransferor if he or she is acting without an agent, shall disclose toany prospective transferee the fact that the property is locatedwithin an area of potential flooding if either: (A) The transferor, or the transferor's agent, has actualknowledge that the property is within an inundation area. (B) The local jurisdiction has compiled a list, by parcel, ofproperties that are within the inundation area and a notice has beenposted at the offices of the county recorder, county assessor, andcounty planning agency that identifies the location of the parcellist. (3) A transferor of real property that is located within a veryhigh fire hazard severity zone, designated pursuant to Section 51178of the Government Code, shall disclose to any prospective transfereethe fact that the property is located within a very high fire hazardseverity zone and is subject to the requirements of Section 51182 ofthe Government Code if either: (A) The transferor, or the transferor's agent, has actualknowledge that the property is within a very high fire hazardseverity zone. (B) A map that includes the property has been provided to thelocal agency pursuant to Section 51178 of the Government Code and anotice has been posted at the offices of the county recorder, countyassessor, and county planning agency that identifies the location ofthe map and any information regarding changes to the map received bythe local agency. (4) A person who is acting as an agent for a transferor of realproperty that is located within an earthquake fault zone, designatedpursuant to Section 2622 of the Public Resources Code, or thetransferor if he or she is acting without an agent, shall disclose toany prospective transferee the fact that the property is locatedwithin a delineated earthquake fault zone if either: (A) The transferor, or the transferor's agent, has actualknowledge that the property is within a delineated earthquake faultzone. (B) A map that includes the property has been provided to the cityor county pursuant to Section 2622 of the Public Resources Code anda notice has been posted at the offices of the county recorder,county assessor, and county planning agency that identifies thelocation of the map and any information regarding changes to the mapreceived by the county. (5) A person who is acting as an agent for a transferor of realproperty that is located within a seismic hazard zone, designatedpursuant to Section 2696 of the Public Resources Code, or thetransferor if he or she is acting without an agent, shall disclose toany prospective transferee the fact that the property is locatedwithin a seismic hazard zone if either: (A) The transferor, or the transferor's agent, has actualknowledge that the property is within a seismic hazard zone. (B) A map that includes the property has been provided to the cityor county pursuant to Section 2696 of the Public Resources Code anda notice has been posted at the offices of the county recorder,county assessor, and county planning agency that identifies thelocation of the map and any information regarding changes to the mapreceived by the county. (6) A transferor of real property that is located within a stateresponsibility area determined by the board, pursuant to Section 4125of the Public Resources Code, shall disclose to any prospectivetransferee the fact that the property is located within a wildlandarea that may contain substantial forest fire risks and hazards andis subject to the requirements of Section 4291 if either: (A) The transferor, or the transferor's agent, has actualknowledge that the property is within a wildland fire zone. (B) A map that includes the property has been provided to the cityor county pursuant to Section 4125 of the Public Resources Code anda notice has been posted at the offices of the county recorder,county assessor, and county planning agency that identifies thelocation of the map and any information regarding changes to the mapreceived by the county. (d) Any waiver of the requirements of this article is void asagainst public policy.1103.1.  (a) This article does not apply to the following transfers: (1) Transfers pursuant to court order, including, but not limitedto, transfers ordered by a probate court in administration of anestate, transfers pursuant to a writ of execution, transfers by anyforeclosure sale, transfers by a trustee in bankruptcy, transfers byeminent domain, and transfers resulting from a decree for specificperformance. (2) Transfers to a mortgagee by a mortgagor or successor ininterest who is in default, transfers to a beneficiary of a deed oftrust by a trustor or successor in interest who is in default,transfers by any foreclosure sale after default, transfers by anyforeclosure sale after default in an obligation secured by amortgage, transfers by a sale under a power of sale or anyforeclosure sale under a decree of foreclosure after default in anobligation secured by a deed of trust or secured by any otherinstrument containing a power of sale, or transfers by a mortgagee ora beneficiary under a deed of trust who has acquired the realproperty at a sale conducted pursuant to a power of sale under amortgage or deed of trust or a sale pursuant to a decree offoreclosure or has acquired the real property by a deed in lieu offoreclosure. (3) Transfers by a fiduciary in the course of the administrationof a decedent's estate, guardianship, conservatorship, or trust. (4) Transfers from one coowner to one or more other coowners. (5) Transfers made to a spouse, or to a person or persons in thelineal line of consanguinity of one or more of the transferors. (6) Transfers between spouses resulting from a judgment ofdissolution of marriage or of legal separation of the parties or froma property settlement agreement incidental to that judgment. (7) Transfers by the Controller in the course of administeringChapter 7 (commencing with Section 1500) of Title 10 of Part 3 of theCode of Civil Procedure. (8) Transfers under Chapter 7 (commencing with Section 3691) orChapter 8 (commencing with Section 3771) of Part 6 of Division 1 ofthe Revenue and Taxation Code. (9) Transfers or exchanges to or from any governmental entity. (b) Transfers not subject to this article may be subject to otherdisclosure requirements, including those under Sections 8589.3,8589.4, and 51183.5 of the Government Code and Sections 2621.9, 2694,and 4136 of the Public Resources Code. In transfers not subject tothis article, agents may make required disclosures in a separatewriting.1103.2.  (a) The disclosures required by this article are set forthin, and shall be made on a copy of, the following Natural HazardDisclosure Statement: NATURAL HAZARD DISCLOSURE STATEMENT  This statement applies to the following  property:________________________________________  The transferor and his or her agent(s) or a  third-party consultant disclose the following  information with the knowledge that even though  this is not a warranty, prospective transferees  may rely on this information in deciding whether  and on what terms to purchase the subject  property. Transferor hereby authorizes any  agent(s) representing any principal(s) in this  action to provide a copy of this statement to  any person or entity in connection with any  actual or anticipated sale of the property.  The following are representations made by the  transferor and his or her agent(s) based on  their knowledge and maps drawn by the state and  federal governments. This information is a  disclosure and is not intended to be part of any  contract between the transferee and transferor.  THIS REAL PROPERTY LIES WITHIN THE FOLLOWING  HAZARDOUS AREA(S): A SPECIAL FLOOD HAZARD AREA (Any type Zone "A" or "V) designated by the Federal Emergency Management Agency. Yes ____ No ____ Do not know and information not available from local jurisdiction ____ AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code. Yes ____ No ____ Do not know and information not available from local jurisdiction ____ A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. Yes ____ No ____ A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the state's responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. Yes ____ No ____ AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. Yes ____ No ____ A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public Resources Code. Yes (Landslide Zone)____________ Yes (Liquefaction Zone) ______ No ____ Map not yet released by state ____  THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP  THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO  RECEIVE ASSISTANCE AFTER A DISASTER.  THE MAPS ON WHICH THESE DISCLOSURES ARE BASED  ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY  ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT  A PROPERTY WILL BE AFFECTED BY A NATURAL  DISASTER. TRANSFEREE(S) AND TRANSFEROR(S) MAY  WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING  THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT  THE PROPERTY.  Signature of Transferor(s)____ Date___________  Signature of Transferor(s)____ Date___________  Agent(s)______________________ Date___________  Agent(s)______________________ Date___________  Check only one of the following:  ( ) Transferor(s) and their agent(s)  represent that the information  herein is true and correct to the best of  their knowledge as of the  date signed by the transferor(s) and agent(s).  ( ) Transferor(s) and their agent(s)  acknowledge that they have  exercised good faith in the selection of a  third-party report provider  as required in Civil Code Section 1103.7, and  that the  representations made in this Natural Hazard  Disclosure Statement  are based upon information provided by the  independent third-party  disclosure provider as a substituted  disclosure pursuant to Civil Code  Section 1103.4. Neither transferor(s) nor  their agent(s) (1) has  independently verified the information  contained in this statement  and report or (2) is personally aware of any  errors or inaccuracies  in the information contained on the  statement. This statement was  prepared by the provider below:  Third-Party  Disclosure Provider(s)________ Date___________  Transferee represents that he or she has read  and understands this  document. Pursuant to Civil Code Section  1103.8, the  representations made in this Natural Hazard  Disclosure Statement  do not constitute all of the transferor's or  agent's disclosure  obligations in this transaction.  Signature of Transferee(s)____ Date___________  Signature of Transferee(s)____ Date___________ (b) If an earthquake fault zone, seismic hazard zone, very highfire hazard severity zone, or wildland fire area map or accompanyinginformation is not of sufficient accuracy or scale that a reasonableperson can determine if the subject real property is included in anatural hazard area, the transferor or transferor's agent shall mark"Yes" on the Natural Hazard Disclosure Statement. The transferor ortransferor's agent may mark "No" on the Natural Hazard DisclosureStatement if he or she attaches a report prepared pursuant tosubdivision (c) of Section 1103.4 that verifies the property is notin the hazard zone. Nothing in this subdivision is intended to limitor abridge any existing duty of the transferor or the transferor'sagents to exercise reasonable care in making a determination underthis subdivision. (c) If the Federal Emergency Management Agency has issued a Letterof Map Revision confirming that a property is no longer within aspecial flood hazard area, then the transferor or transferor's agentmay mark "No" on the Natural Hazard Disclosure Statement, even if themap has not yet been updated. The transferor or transferor's agentshall attach a copy of the Letter of Map Revision to the disclosurestatement. (d) If the Federal Emergency Management Agency has issued a Letterof Map Revision confirming that a property is within a special floodhazard area and the location of the letter has been posted pursuantto subdivision (g) of Section 8589.3 of the Government Code, then thetransferor or transferor's agent shall mark "Yes" on the NaturalHazard Disclosure Statement, even if the map has not yet beenupdated. The transferor or transferor's agent shall attach a copy ofthe Letter of Map Revision to the disclosure statement. (e) The disclosure required pursuant to this article may beprovided by the transferor and the transferor's agent in the LocalOption Real Estate Disclosure Statement described in Section 1102.6a,provided that the Local Option Real Estate Disclosure Statementincludes substantially the same information and substantially thesame warnings that are required by this section. (f) (1) The legal effect of a consultant's report delivered tosatisfy the exemption provided by Section 1103.4 is not changed whenit is accompanied by a Natural Hazard Disclosure Statement. (2) A consultant's report shall always be accompanied by acompleted and signed Natural Hazard Disclosure Statement. (3) In a disclosure statement required by this section, an agentand third-party provider may cause his or her name to be preprintedin lieu of an original signature in the portions of the form reservedfor signatures. The use of a preprinted name shall not change thelegal effect of the acknowledgment. (g) The disclosure required by this article is only a disclosurebetween the transferor, the transferor's agents, and the transferee,and shall not be used by any other party, including, but not limitedto, insurance companies, lenders, or governmental agencies, for anypurpose. (h) In any transaction in which a transferor has accepted, priorto June 1, 1998, an offer to purchase, the transferor, or his or heragent, shall be deemed to have complied with the requirement ofsubdivision (a) if the transferor or agent delivers to theprospective transferee a statement that includes substantially thesame information and warning as the Natural Hazard DisclosureStatement.1103.3.  (a) The transferor of any real property subject to thisarticle shall deliver to the prospective transferee the writtenstatement required by this article, as follows: (1) In the case of a sale, as soon as practicable before transferof title. (2) In the case of transfer by a real property sales contract, asdefined in Section 2985, or by a lease together with an option topurchase, or a ground lease coupled with improvements, as soon aspracticable before execution of the contract. For the purpose of thissubdivision, "execution" means the making or acceptance of an offer. (b) The transferor shall indicate compliance with this articleeither on the receipt for deposit, the real property sales contract,the lease, any addendum attached thereto, or on a separate document. (c) If any disclosure, or any material amendment of anydisclosure, required to be made pursuant to this article is deliveredafter the execution of an offer to purchase, the transferee shallhave three days after delivery in person or five days after deliveryby deposit in the mail to terminate his or her offer by delivery of awritten notice of termination to the transferor or the transferor'sagent.1103.4.  (a) Neither the transferor nor any listing or selling agentshall be liable for any error, inaccuracy, or omission of anyinformation delivered pursuant to this article if the error,inaccuracy, or omission was not within the personal knowledge of thetransferor or the listing or selling agent, and was based oninformation timely provided by public agencies or by other personsproviding information as specified in subdivision (c) that isrequired to be disclosed pursuant to this article, and ordinary carewas exercised in obtaining and transmitting the information. (b) The delivery of any information required to be disclosed bythis article to a prospective transferee by a public agency or otherperson providing information required to be disclosed pursuant tothis article shall be deemed to comply with the requirements of thisarticle and shall relieve the transferor or any listing or sellingagent of any further duty under this article with respect to thatitem of information. (c) The delivery of a report or opinion prepared by a licensedengineer, land surveyor, geologist, or expert in natural hazarddiscovery dealing with matters within the scope of the professional'slicense or expertise, shall be sufficient compliance for applicationof the exemption provided by subdivision (a) if the information isprovided to the prospective transferee pursuant to a requesttherefor, whether written or oral. In responding to that request, anexpert may indicate, in writing, an understanding that theinformation provided will be used in fulfilling the requirements ofSection 1103.2 and, if so, shall indicate the required disclosures,or parts thereof, to which the information being furnished isapplicable. Where that statement is furnished, the expert shall notbe responsible for any items of information, or parts thereof, otherthan those expressly set forth in the statement. (1) In responding to the request, the expert shall determinewhether the property is within an airport influence area as definedin subdivision (b) of Section 11010 of the Business and ProfessionsCode. If the property is within an airport influence area, the reportshall contain the following statement: NOTICE OF AIRPORT IN VICINITY  This property is presently located in the  vicinity of an  airport, within what is known as an airport  influence area. For that  reason, the property may be subject to some of  the annoyances or  inconveniences associated with proximity to  airport operations  (for example: noise, vibration, or odors).  Individual sensitivities  to those annoyances can vary from person to  person. You may wish to  consider what airport annoyances, if any, are  associated with the  property before you complete your purchase and  determine whether they  are acceptable to you. (2) In responding to the request, the expert shall determinewhether the property is within the jurisdiction of the San FranciscoBay Conservation and Development Commission, as defined in Section66620 of the Government Code. If the property is within thecommission's jurisdiction, the report shall contain the followingnotice:NOTICE OF SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSIONJURISDICTION This property is located within the jurisdiction of the SanFrancisco Bay Conservation and Development Commission. Use anddevelopment of property within the commission's jurisdiction may besubject to special regulations, restrictions, and permitrequirements. You may wish to investigate and determine whether theyare acceptable to you and your intended use of the property beforeyou complete your transaction. (3) In responding to the request, the expert shall determinewhether the property is presently located within one mile of a parcelof real property designated as "Prime Farmland," "Farmland ofStatewide Importance," "Unique Farmland," "Farmland of LocalImportance," or "Grazing Land" on the most current "ImportantFarmland Map" issued by the California Department of Conservation,Division of Land Resource Protection, utilizing solely thecounty-level GIS map data, if any, available on the Farmland Mappingand Monitoring Program website. If the residential property is withinone mile of a designated farmland area, the report shall contain thefollowing notice: NOTICE OF RIGHT TO FARM This property is located within one mile of a farm or ranch landdesignated on the current county-level GIS "Important Farmland Map,"issued by the California Department of Conservation, Division of LandResource Protection. Accordingly, the property may be subject toinconveniences or discomforts resulting from agricultural operationsthat are a normal and necessary aspect of living in a community witha strong rural character and a healthy agricultural sector. Customaryagricultural practices in farm operations may include, but are notlimited to, noise, odors, dust, light, insects, the operation ofpumps and machinery, the storage and disposal of manure, beepollination, and the ground or aerial application of fertilizers,pesticides, and herbicides. These agricultural practices may occur atany time during the 24-hour day. Individual sensitivities to thosepractices can vary from person to person. You may wish to considerthe impacts of such agricultural practices before you complete yourpurchase. Please be advised that you may be barred from obtaininglegal remedies against agricultural practices conducted in a mannerconsistent with proper and accepted customs and standards pursuant toSection 3482.5 of the Civil Code or any pertinent local ordinance.1103.5.  (a) After a transferor and his or her agent comply withSection 1103.2, they shall be relieved of further duty under thisarticle with respect to those items of information. The transferorand his or her agent shall not be required to provide notice to thetransferee if the information provided subsequently becomesinaccurate as a result of any governmental action, map revision,changed information, or other act or occurrence, unless thetransferor or agent has actual knowledge that the information hasbecome inaccurate. (b) If information disclosed in accordance with this article issubsequently rendered inaccurate as a result of any governmentalaction, map revision, changed information, or other act or occurrencesubsequent to the delivery of the required disclosures, theinaccuracy resulting therefrom does not constitute a violation ofthis article.1103.7.  Each disclosure required by this article and each act thatmay be performed in making the disclosure shall be made in goodfaith. For purposes of this article, "good faith" means honesty infact in the conduct of the transaction.1103.8.  (a) The specification of items for disclosure in thisarticle does not limit or abridge any obligation for disclosurecreated by any other provision of law or that may exist in order toavoid fraud, misrepresentation, or deceit in the transfertransaction. The legislature does not intend to affect the existingobligations of the parties to a real estate contract, or theiragents, to disclose any fact materially affecting the value anddesirability of the property, including, but not limited to, thephysical condition of the property and previously received reports ofphysical inspection noted on the disclosure form provided pursuantto Section 1102.6 or 1102.6a. (b) Nothing in this article shall be construed to change the dutyof a real estate broker or salesperson pursuant to Section 2079.1103.9.  Any disclosure made pursuant to this article may be amendedin writing by the transferor or his or her agent, but the amendmentshall be subject to Section 1103.3.1103.10.  Delivery of disclosures required by this article shall beby personal delivery to the transferee or by mail to the prospectivetransferee. For the purposes of this article, delivery to the spouseof a transferee shall be deemed delivery to the transferee, unlessprovided otherwise by contract.1103.11.  Any person or entity, other than a real estate licenseelicensed pursuant to Part 1 (commencing with Section 10000) ofDivision 4 of the Business and Professions Code, acting in thecapacity of an escrow agent for the transfer of real property subjectto this article shall not be deemed the agent of the transferor ortransferee for purposes of the disclosure requirements of thisarticle, unless the person or entity is empowered to so act by anexpress written agreement to that effect. The extent of that agencyshall be governed by the written agreement.1103.12.  (a) If more than one licensed real estate broker is actingas an agent in a transaction subject to this article, the broker whohas obtained the offer made by the transferee shall, except asotherwise provided in this article, deliver the disclosure requiredby this article to the transferee, unless the transferor has givenother written instructions for delivery. (b) If a licensed real estate broker responsible for deliveringthe disclosures under this section cannot obtain the disclosuredocument required and does not have written assurance from thetransferee that the disclosure has been received, the broker shalladvise the transferee in writing of his or her rights to thedisclosure. A licensed real estate broker responsible for deliveringdisclosures under this section shall maintain a record of the actiontaken to effect compliance in accordance with Section 10148 of theBusiness and Professions Code.1103.13.  No transfer subject to this article shall be invalidatedsolely because of the failure of any person to comply with anyprovision of this article. However, any person who willfully ornegligently violates or fails to perform any duty prescribed by anyprovision of this article shall be liable in the amount of actualdamages suffered by a transferee.1103.14.  (a) As used in this article, "listing agent" means listingagent as defined in subdivision (f) of Section 1086. (b) As used in this article, "selling agent" means selling agentas defined in subdivision (g) of Section 1086, exclusive of therequirement that the agent be a participant in a multiple listingservice as defined in Section 1087.