If you are the owner of a condo ruled by a homeowners’ association (HOA), you are in great situation to enter the sellers’ market and start entertaining bids from prospective buyers. As you start evaluating the real estate agents who list condos in Irvine for sale, you should keep in mind California law will require you to make certain disclosures to buyers.
The framework of the current disclosures property sellers should present to buyers was implemented in 2005 during Governor Schwarzenegger’s administration. The format is promulgated by section 1102 of the California Civil Code, and the Department of Real Estate published the first booklet for public use in the same year. As a seller, you will be required to furnish buyers with two forms: the Transfer Disclosure Statement and the Natural Hazard Disclosure Statement. Your real estate agent will take care of these two disclosures.
Common Interest Development
This is a major disclosure that lets buyers know the property they intend to acquire is part of a common interest development, which means it is governed by an association. Such is the case with condominiums, but various other dwelling arrangements such as carriage homes, attached townhomes, and gated communities may also fall under this regime. Veteran homebuyers in Irvine may be used to these disclosures. After all, this is a planned city. Nonetheless, a buyer from the San Gabriel Valley who is used to a single-family residence may not be familiar with certain aspects such as mandatory membership, monthly or quarterly payment of fees, maintenance of common areas, use of amenities, and others.
The bylaws of the common interest development must be fully disclosed to prospective buyers. This means furnishing a valid copy of the rules and regulations of the HOA. It is important to remember the obligation to make this disclosure falls upon the seller and not the association. Prospective buyers have the right to review the bylaws and decide whether they want to live under the rules and regulations promulgated by the association.
Recent Deaths in the Property
This is an actual item found in the Transfer Disclosure Statement: deaths that took place in the condo unit and within the last three years must be disclosed. Any deaths that occurred more than three years before the buyer showed interest in the property do not have to be disclosed, and the same goes if an occupant passed away from complications related to the human immunodeficiency virus.
California Natural Hazard Disclosure Statement
If the condominium lies right on top a geological fault line, this must be properly disclosed. When the building structure in a flood zone and the unit is located in the lower floors, it must also be disclosed. Prior damage from earthquakes and other natural disasters must be disclosed if it was significant and required an insurance claim.
Whether you’re selling a condo or looking for new homes for sale in Irvine, California, it’s crucial to make sure you connect with an agent you can trust and rely on. Call 714-454-6304 today to find out how we can help with your real estate needs in Irvine.