April 17th, 2017 at 5:23 pm
Answer: Yes, most likely. Some agents think that the answer is “no” because both the CR and paragraph 14F of the RPA state that, unless otherwise specified in writing, a buyer who removes contingencies shall be deemed to have reviewed the disclosures. However, an exception as “otherwise specified in writing” is found in paragraph 10A(3) of the RPA, which states that a waiver of statutory disclosures is prohibited by law. More specifically, the TDS law provides that, if the TDS is delivered after the buyer writes an offer, the buyer can cancel within 3 days after personal delivery (or 5 days after delivery by mail). The law also states that any waiver of the TDS requirements is “void against public policy.” These legal parameters for the TDS also hold true for disclosures related to the TDS, such as the NHD, Mello-Roos, 1915 Bond Act, and some other disclosures. But they do not necessarily hold true for all disclosures, such as, for example, the SPQ, which is merely required by contract, not by law. Hence, the answer can be more complicated in some situations, depending on which disclosures have not yet been provided, and what information is contained in those disclosures.
-Thank you to Bill Taylor (Encino Associate Manager) 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 April 17, 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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