Amended in Assembly July 2, 2013

Amended in Senate April 30, 2013

Amended in Senate April 22, 2013

Senate Bill No. 652

Introduced by Senator DeSaulnier

February 22, 2013

An act to begin delete add Section 1102.3b to end delete begin insert amend Section 1102.6 of end insert the Civil Code, relating to real property.

LEGISLATIVE COUNSEL’S DIGEST

SB 652, as amended, DeSaulnier. Real property disclosures: construction defect litigation.

Existing law requires the transferor of residential property to make certain disclosures to a prospective transferee and requires these disclosures to be made on a specified form. begin delete Under existing law, the transferor is required to disclose any lawsuits by or against the transferor threatening to or affecting the real property, as specified. Existing law makes any person who willfully or negligently violates or fails to perform any specified duty liable in the amount of actual damages suffered by a transferee. end delete

begin delete

Existing law prescribes a process for determining liability in an action seeking the recovery of damages arising out of, or related to, deficiencies in residential construction, design, and related issues and sets forth specified standards in this regard.

end delete

This bill would begin delete require the transferor of any real property end delete begin insert revise the transfer disclosure form end insert to additionally disclose to a potential transferee begin delete all claims for damages relating to deficiencies in residential construction, as specified, made by the transferor and the status of those claims end delete begin insert specified claims for damages by the seller end insert .

begin insert

The bill would make its provisions operative on July 1, 2014.

end insert

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 1102.6 of the end insert begin insert Civil Code end insert begin insert is amended to
read: end insert

1102.6.  

begin insert (a) end insert begin insert   end insert The disclosures required by this article pertaining
to the property proposed to be transferred are set forth in, and shall
be made on a copy of, the following disclosure form:

[6 pages]

begin insert

(b) The amendments to this section by the act adding this
subdivision shall become operative on July 1, 2014.

end insert

begin delete

SECTION 1.  

Section 1102.3b is added to the Civil Code, to
read:

1102.3b.  

In addition to the disclosures required by Section
1102.6, the transferor of any real property subject to this article
shall disclose to a potential transferee all claims for damages made
by the transferor pursuant to Title 7 (commencing with Section
895) of Part 2 of Division 2 and the status of these claims.

end delete