What’s New With PRDS Forms
By David Hamerslough
May 8th, 2017
The PRDS Forms Committee is finalizing updates to the Santa Clara County/San Mateo County Advisory. The updates include an alphabetical index identifying the topics that are covered in the advisory, including the paragraph and page number.
Additional updates include the following:
Paragraph 36 of the Advisory now includes information on the new law that landlords must comply with regarding providing a statutory bedbug notice to new tenants and the eradication of bedbugs.
Paragraph 39 of the Advisory now indicates that PACE loans are usually not listed on preliminary reports from title companies.
Paragraph 41 has been rewritten consistent with the changes in California law regarding deaths on a property. Buyers are advised that if they have questions about this topic, they should put their inquiries in writing for a written response, if any, from sellers.
Paragraph 42 contains new language indicating that any seller who has a question regarding the obligation to provide an amended TDS should consult with a qualified California real estate attorney.
Paragraph 61 contains a new second paragraph that recommends that where either a seller is going to retain possession of property after escrow closes or a buyer is going to obtain possession prior to close of escrow, the parties should first consult with their insurance brokers to ascertain the availability of necessary insurance coverage.
Paragraph 64 regarding common interest developments now has two paragraphs. The first advises sellers who have served on the Board of a homeowners’ association that they may have had access to information and documentation that is not provided by the HOA as part of any disclosure packet or that is otherwise deemed “confidential” or protected by an “attorney-client privilege” and that such sellers should consult with their own qualified California real estate attorney to determine whether, and if so how, they will need to disclose such additional information. This language has been added in part in response to the issues arising out of the Millennium Towers dispute in San Francisco.
A second paragraph to Paragraph 64 has been added, indicating that a single interest in a common-interest development will be required to provide annual notification to the HOA of their contact information.
Finally, although Paragraphs 7 and 8 of the Advisory have not been changed, buyers and sellers should be aware of these paragraphs if they have any issues or questions regarding square footage, number of rooms, age of the property, lot size, and/or boundaries. This language already addresses, in part, some of the issues raised by the recent Supreme Court decision Horiike v. Coldwell Banker.
The issue of square-footage and lot-size discrepancies is also being addressed in a new advisory and disclosure. This will be a separate stand-alone document that contains information similar to that contained in Paragraphs 7 and 8 of the Advisory but also contains a chart to allow a disclosure of various sources of information regarding the square footage of the structures on the property as well as the lot size. It is contemplated that the chart in the advisory/disclosure will be filled out by the listing agent and will also be acknowledged by the buyer and seller.
Finally, the Forms Committee is drafting an advisory regarding disclosure documents. This advisory would provide a seller with some suggestions to follow when filling out a TDS, an SSC, an SPQ, or an Exempt Seller Disclosure. The Forms Committee is also in the process of finalizing its Exempt Seller Disclosure.
At this time, the Forms Committee is also in the process of updating the Supplemental Seller’s Checklist and anticipates reviewing the PRDS purchase contract in the near future.