January 1st, 2017 at 9:46 am
Answer: It depends. The answer is generally “yes” if the property is a single-family home built before January 2, 1994. However, the answer is “no” for newer homes because the new law does not apply to those properties. The answer is also “no” for properties in Los Angeles and other cities with existing local
The new California statewide law, effective January 1, 2017, generally requires owners of single-family homes built before January 2, 1994 to be equipped with water-conserving plumbing fixtures, including low-flow showerheads, toilets, and faucets. Exceptions include certain historic homes, infeasible installations, demolitions, and cities with noncompliant plumbing fixture ordinances. The California statewide law is not a point-of-sale requirement. However, sellers in Los Angeles and other cities must continue to comply with existing local ordinances requiring water-conserving plumbing fixtures as a condition of sale.
Here’s what you should do for your pending transactions that fall within the scope of the new law:
Have both the seller and buyer sign the new Water-Conserving Plumbing Fixtures and Carbon Monoxide Detector Notice (C.A.R. Form WCMD) which sets forth the new law. C.A.R. released this form on December 12, 2016.
Have the seller complete the newly revised Seller Property Questionnaire (SPQ) which has a new question about whether the seller knows about any non-compliant plumbing fixtures. If the seller is exempt from the TDS requirement, have the seller complete the newly revised Exempt Seller Disclosure (ESD) instead of the SPQ. C.A.R. also released these forms on December 12, 2016.
Deliver the revised SPQ or ESD to the buyer for signature. To be safe, give the buyer a minimum of 3 days to cancel before close of escrow if the SPQ or ESD is delivered in person, or 5 days if delivered by mail (see paragraph 10A(7) of the RPA).
For more information, C.A.R. has a legal article on Water-Conserving Plumbing Fixtures, available at Water Conserving Plumbing Fixture.
Have a great year 2017 everyone!
-Thank you to Valerie Punwar (Calabasas Office) for suggesting this week’s legal tip.
Copyright© 2017 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of January 1, 2017. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.
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