BILL NUMBER: SB 534 CHAPTERED
BILL TEXT
CHAPTER 517
FILED WITH SECRETARY OF STATE SEPTEMBER 27, 1999
APPROVED BY GOVERNOR SEPTEMBER 27, 1999
PASSED THE SENATE AUGUST 31, 1999
PASSED THE ASSEMBLY AUGUST 26, 1999
AMENDED IN ASSEMBLY AUGUST 19, 1999
AMENDED IN ASSEMBLY JULY 13, 1999
AMENDED IN ASSEMBLY JUNE 28, 1999
AMENDED IN SENATE MAY 25, 1999
AMENDED IN SENATE APRIL 26, 1999
INTRODUCED BY Senator Dunn
FEBRUARY 19, 1999
An act to amend Sections 1102, 1102.1, 1102.2, and 1102.9 of, and
to add Sections 798.75.5, 1102.3a and 1102.6d to, the Civil Code, and
to amend Sections 18025 and 18046 of the Health and Safety Code,
relating to mobilehomes and manufactured homes.
LEGISLATIVE COUNSEL'S DIGEST
SB 534, Dunn. Mobilehomes and manufactured homes.
Existing law makes provisions for the disclosure of specified
information upon the transfer of residential real property applicable
to the resale of a manufactured home or mobilehome, which are
classified as personal property, on or after January 1, 2000.
This bill would revise and recast these disclosure requirements.
Among other things, the bill would provide for a transfer disclosure
form to be used for specified manufactured homes and mobilehomes, and
would make related changes. It would also make technical changes in
those provisions.
This bill would also incorporate changes made by AB 594 to Section
1102.2 of the Civil Code if both bills become operative and this
bill becomes operative last.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 798.75.5 is added to the Civil Code, to read:
798.75.5. (a) The management shall provide a prospective
homeowner with a completed written disclosure form concerning the
park described in subdivision (b) at least three days prior to
execution of a rental agreement or statement signed by the park
management and the prospective homeowner that the parties have agreed
to the terms and conditions of the rental agreement. The management
shall update the information on the disclosure form annually, or, in
the event of a material change in the condition of the mobilehome
park, at the time of the material change in that condition.
(b) The written disclosure form shall read as follows:
SEC. 2. Section 1102 of the Civil Code is amended to read:
1102. (a) Except as provided in Section 1102.2, this article
applies to any transfer by sale, exchange, installment land sale
contract, as defined in Section 2985, lease with an option to
purchase, any other option to purchase, or ground lease coupled with
improvements, of real property or residential stock cooperative,
improved with or consisting of not less than one nor more than four
dwelling units.
(b) Except as provided in Section 1102.2, this article shall apply
to a resale transaction entered into on or after January 1, 2000,
for a manufactured home, as defined in Section 18007 of the Health
and Safety Code, or a mobilehome, as defined in Section 18008 of the
Health and Safety Code, which manufactured home or mobilehome is
classified as personal property and intended for use as a residence.
(c) Any waiver of the requirements of this article is void as
against public policy.
SEC. 3. Section 1102.1 of the Civil Code is amended to read:
1102.1. (a) In enacting Chapter 817 of the Statutes of 1994, it
was the intent of the Legislature to clarify and facilitate the use
of the real estate disclosure statement, as specified in Section
1102.6. The Legislature intended the statement to be used by
transferors making disclosures required under this article and by
agents making disclosures required by Section 2079 on the agent's
portion of the real estate disclosure statement, in transfers subject
to this article. In transfers not subject to this article, agents
may make required disclosures in a separate writing. The Legislature
did not intend to affect the existing obligations of the parties to
a real estate contract, or their agents, to disclose any fact
materially affecting the value and desirability of the property,
including, but not limited to, the physical conditions of the
property and previously received reports of physical inspections
noted on the disclosure form set forth in Section 1102.6 or 1102.6a,
and that nothing in this article shall be construed to change the
duty of a real estate broker or salesperson pursuant to Section 2079.
It is also the intent of the Legislature that the delivery of a
real estate transfer disclosure statement may not be waived in an "as
is" sale, as held in Loughrin v. Superior Court (1993) 15 Cal. App.
4th 1188.
(b) In enacting Chapter 677 of the Statutes of 1996, it was the
intent of the Legislature to clarify and facilitate the use of the
manufactured home and mobilehome transfer disclosure statement
applicable to the resale of a manufactured home or mobilehome
pursuant to subdivision (b) of Section 1102. The Legislature
intended the statements to be used by transferors making disclosures
required under this article and by agents making disclosures required
by Section 2079 on the agent's portion of the disclosure statement
and as required by Section 18046 of the Health and Safety Code on the
dealer's portion of the manufactured home and mobilehome transfer
disclosure statement, in transfers subject to this article. In
transfers not subject to this article, agents may make required
disclosures in a separate writing. The Legislature did not intend to
affect the existing obligations of the parties to a real estate
contract, or their agents, to disclose any fact materially affecting
the value and desirability of the property, including, but not
limited to, the physical conditions of the property and previously
received reports of physical inspections noted on the disclosure form
set forth in Section 1102.6 or 1102.6a or to affect the existing
obligations of the parties to a manufactured home or mobilehome
purchase contract, and nothing in this article shall be construed to
change the duty of a real estate broker or salesperson pursuant to
Section 2079 or the duty of a manufactured home or mobilehome dealer
or salesperson pursuant to Section 18046 of the Health and Safety
Code.
It is also the intent of the Legislature that the delivery of a
mobilehome transfer disclosure statement may not be waived in an "as
is" sale.
(c) It is the intent of the Legislature that manufactured home and
mobilehome dealers and salespersons and real estate brokers and
salespersons use the form provided pursuant to Section 1102.6d. It
is also the intent of the Legislature for sellers of manufactured
homes or mobilehomes who are neither manufactured home dealers or
salespersons nor real estate brokers or salespersons to use the
Manufactured Home/Mobilehome Transfer Disclosure Statement contained
in Section 1102.6d.
SEC. 4. Section 1102.2 of the Civil Code is amended to read:
1102.2. This article does not apply to the following:
(a) Transfers which are required to be preceded by the furnishing
to a prospective transferee of a copy of a public report pursuant to
Section 11018.1 of the Business and Professions Code and transfers
which can be made without a public report pursuant to Section 11010.4
of the Business and Professions Code.
(b) Transfers pursuant to court order, including, but not limited
to, transfers ordered by a probate court in the administration of an
estate, transfers pursuant to a writ of execution, transfers by any
foreclosure sale, transfers by a trustee in bankruptcy, transfers by
eminent domain, and transfers resulting from a decree for specific
performance.
(c) Transfers to a mortgagee by a mortgagor or successor in
interest who is in default, transfers to a beneficiary of a deed of
trust by a trustor or successor in interest who is in default,
transfers by any foreclosure sale after default, transfers by any
foreclosure sale after default in an obligation secured by a
mortgage, transfers by a sale under a power of sale or any
foreclosure sale under a decree of foreclosure after default in an
obligation secured by a deed of trust or secured by any other
instrument containing a power of sale, transfers by a mortgagee or a
beneficiary under a deed of trust who has acquired the real property
at a sale conducted pursuant to a power of sale under a mortgage or
deed of trust or a sale pursuant to a decree of foreclosure or has
acquired the real property by a deed in lieu of foreclosure,
transfers to the legal owner or lienholder of a manufactured home or
mobilehome by a registered owner or successor in interest who is in
default, or transfers by reason of any foreclosure of a security
interest in a manufactured home or mobilehome.
(d) Transfers by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust.
(e) Transfers from one coowner to one or more other coowners.
(f) Transfers made to a spouse, or to a person or persons in the
lineal line of consanguinity of one or more of the transferors.
(g) Transfers between spouses resulting from a judgment of
dissolution of marriage or of legal separation or from a property
settlement agreement incidental to that judgment.
(h) Transfers by the Controller in the course of administering
Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the
Code of Civil Procedure.
(i) Transfers under Chapter 7 (commencing with Section 3691) or
Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of
the Revenue and Taxation Code.
(j) Transfers or exchanges to or from any governmental entity.
SEC. 4.5. Section 1102.2 of the Civil Code is amended to read:
1102.2. This article does not apply to the following:
(a) Transfers which are required to be preceded by the furnishing
to a prospective transferee of a copy of a public report pursuant to
Section 11018.1 of the Business and Professions Code and transfers
which can be made without a public report pursuant to Section 11010.4
of the Business and Professions Code.
(b) Transfers pursuant to court order, including, but not limited
to, transfers ordered by a probate court in the administration of an
estate, transfers pursuant to a writ of execution, transfers by any
foreclosure sale, transfers by a trustee in bankruptcy, transfers by
eminent domain, and transfers resulting from a decree for specific
performance.
(c) Transfers to a mortgagee by a mortgagor or successor in
interest who is in default, transfers to a beneficiary of a deed of
trust by a trustor or successor in interest who is in default,
transfers by any foreclosure sale after default, transfers by any
foreclosure sale after default in an obligation secured by a
mortgage, transfers by a sale under a power of sale or any
foreclosure sale under a decree of foreclosure after default in an
obligation secured by a deed of trust or secured by any other
instrument containing a power of sale, transfers by a mortgagee or a
beneficiary under a deed of trust who has acquired the real property
at a sale conducted pursuant to a power of sale under a mortgage or
deed of trust or a sale pursuant to a decree of foreclosure or has
acquired the real property by a deed in lieu of foreclosure,
transfers to the legal owner or lienholder of a manufactured home or
mobilehome by a registered owner of successor in interest who is in
default, or transfers by reason of any foreclosure of a security
interest in a manufactured home or mobilehome.
(d) Transfers by a fiduciary in the course of the administration
of a decedent's estate, guardianship, conservatorship, or trust.
This exemption shall not apply to a transfer if the trustee is a
natural person who is sole trustee of a revocable trust and he or she
is a former owner of the property or an occupant in possession of
the property within the preceding year.
(e) Transfers from one coowner to one or more other coowners.
(f) Transfers made to a spouse, or to a person or persons in the
lineal line of consanguinity of one or more of the transferors.
(g) Transfers between spouses resulting from a judgment of
dissolution of marriage or of legal separation or from a property
settlement agreement incidental to that judgment.
(h) Transfers by the Controller in the course of administering
Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the
Code of Civil Procedure.
(i) Transfers under Chapter 7 (commencing with Section 3691) or
Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of
the Revenue and Taxation Code.
(j) Transfers or exchanges to or from any governmental entity.
SEC. 5. Section 1102.3a is added to the Civil Code, to read:
1102.3a. (a) The transferor of any manufactured home or
mobilehome subject to this article shall deliver to the prospective
transferee the written statement required by this article, as
follows:
(1) In the case of a sale, or a lease with an option to purchase,
of a manufactured home or mobilehome, involving an agent, as defined
in Section 18046 of the Health and Safety Code, as soon as
practicable, but no later than the close of escrow for the purchase
of the manufactured home or mobilehome.
(2) In the case of a sale, or lease with an option to purchase, of
a manufactured home or mobilehome, not involving an agent, as
defined in Section 18046 of the Health and Safety Code, at the time
of execution of any document by the prospective transferee with the
transferor for the purchase of the manufactured home or mobilehome.
(b) With respect to any transfer subject to this section, the
transferor shall indicate compliance with this article either on the
transfer disclosure statement, any addendum thereto, or on a separate
document.
(c) If any disclosure, or any material amendment of any
disclosure, required to be made pursuant to subdivision (b) of
Section 1102, is delivered after the execution of an offer to
purchase, the transferee shall have three days after delivery in
person or five days after delivery by deposit in the mail, to
terminate his or her offer by delivery of a written notice of
termination to the transferor.
SEC. 6. Section 1102.6d is added to the Civil Code, to read:
1102.6d. Except for manufactured homes and mobilehomes located in
a common interest development governed by Title 6 (commencing with
Section 1351), the disclosures applicable to the resale of a
manufactured home or mobilehome pursuant to subdivision (b) of
Section 1102 are set forth in, and shall be made on a copy of, the
following disclosure form:
SEC. 7. Section 1102.9 of the Civil Code is amended to read:
1102.9. Any disclosure made pursuant to this article may be
amended in writing by the transferor or his or her agent, but the
amendment shall be subject to Section 1102.3 or 1102.3a.
SEC. 8. Section 18025 of the Health and Safety Code is amended to
read:
18025. (a) Except as provided in subdivisions (b) and (c), it is
unlawful for any person to sell, offer for sale, rent, or lease
within this state, any manufactured home or any mobilehome,
commercial coach, or special purpose commercial coach manufactured
after September 1, 1958, containing structural, fire safety,
plumbing, heat-producing, or electrical systems and equipment unless
the systems and equipment meet the requirements of the department for
those systems and that equipment and the installation of those
systems and that equipment. The department may adopt rules and
regulations that are reasonably consistent with recognized and
accepted principles for structural, fire safety, plumbing,
heat-producing, and electrical systems and equipment and
installations, respectively, to protect the health and safety of the
people of this state from dangers inherent in the use of substandard
and unsafe structural, fire safety, plumbing, heat-producing, and
electrical systems, equipment and installations.
(b) All manufactured homes and mobilehomes manufactured on or
after June 15, 1976, shall comply with the National Manufactured
Housing Construction and Safety Standards Act of 1974 (42 U.S.C. Sec.
5401 et seq.).
(c) The sale of used manufactured homes and mobilehomes by an
agent licensed pursuant to this part shall be subject to Section
18046.
SEC. 9. Section 18046 of the Health and Safety Code is amended to
read:
18046. (a) An "agent" for purposes of this section and Section
18025, means a dealer or salesperson licensed pursuant to this part,
or a real estate broker or salesperson licensed pursuant to Division
4 (commencing with Section 10000) of the Business and Professions
Code.
(b) A "seller" for the purposes of this section and Section 18025
means the lawful owner of the manufactured home or mobilehome
offering the home for sale. For purposes of this section and Section
18025, the exemptions enumerated by Section 1102.2 of the Civil Code
shall be applicable to the transfer of a manufactured home or
mobilehome.
(c) The sale of used manufactured homes or mobilehomes by a real
estate broker or salesperson licensed under Division 4 (commencing
with Section 10000) of the Business and Professions Code shall be
subject to Section 2079 of the Civil Code.
(d) It is the duty of a dealer or salesperson, licensed under this
chapter, to a prospective buyer of a used manufactured home or
mobile home, subject to registration pursuant to this part, to
conduct a reasonably competent and diligent visual inspection of the
home offered for sale and to disclose to that prospective buyer all
facts materially affecting the value or desirability of the home that
an investigation would reveal, if that dealer or salesperson has a
written contract with the seller to find or obtain a buyer or is a
dealer or salesperson who acts in cooperation with others to find and
obtain a buyer. Where a transfer disclosure statement is required
pursuant to subdivision (b) of Section 1102 of the Civil Code, a
dealer or salesperson shall discharge that duty by completing the
agent's portion of the transfer disclosure statement that a seller
prepares and delivers to a prospective buyer pursuant to subdivision
(b) of Section 1102 of the Civil Code. If no transfer disclosure
statement is required, but the transaction is not exempt under
Section 1102.2 of the Civil Code, a dealer shall discharge that duty
by completing and delivering to the prospective buyer an exact
reproduction of Sections III, IV, and V of the transfer disclosure
statement required pursuant to subdivision (b) of Section 1102 of the
Civil Code.
SEC. 10. Section 4.5 of this bill incorporates amendments to
Section 1102.2 of the Civil Code proposed by both this bill and AB
594. It shall only become operative if (1) both bills are enacted
and become effective on or before January 1, 2000, (2) each bill
amends Section 1102.2 of the Civil Code, and (3) this bill is enacted
after AB 594, in which case Section 4 of this bill shall not become
operative.