Practice Topic — Quick Reference Cheat Sheet

California Disclosure Framework

|---|---|---|---| Deaths: Must disclose if asked and within 3 years. AIDS-related = NEVER required regardless of age.

NHD — 6 Hazard Zones

Special Flood Hazard Area (FEMA)

Potential Flooding (dam inundation)

Very High Fire Hazard Severity Zone

State Responsibility Area (wildland fire)

Earthquake Fault Zone (Alquist-Priolo)

Seismic Hazard Zone (liquefaction/landslide)

California Property Taxes

|---|---|

Disclosure	Statute	Timing	3/5 Day Rescission?
TDS	Civil Code §1102	ASAP before transfer	Yes
NHD	Civil Code §1103	ASAP before transfer	Yes
SPQ	Custom	With TDS	No separate right
Lead paint	Federal (pre-1978)	Before buyer bound	10-day inspection window
Mello-Roos	CFD statute	Before buyer bound	Yes
Deaths	Civil Code §1710.2	If buyer asks (3 years)	N/A
Item	Detail
Prop 13 (1978)	Base year = acquisition; max 2%/year increase; transfers reset
Base year value	Purchase price (or new construction value)
Prop 19 (2021)	Parent-child transfer: primary residence only; child must occupy; tax basis partially protected
Supplemental tax	Triggered when property transfers; pro-rated from date of change
Mello-Roos	Special CFD tax; NOT subject to Prop 13 cap; must be disclosed
Tax installments	1st: due Nov 1, delinquent Dec 10; 2nd: due Feb 1, delinquent Apr 10

Environmental Disclosures

• CERCLA: Federal Superfund; seller must disclose known contamination

• Underground storage tanks (UST): major liability; disclose known tanks

• Asbestos: pre-1980 buildings; friable asbestos = immediate hazard; non-friable = monitor

• Lead-based paint: pre-1978; federal + CA requirements

• Formaldehyde: in manufactured homes; disclose

• Radon: less common in CA than other states; disclose if known

Natural Hazards

• Alquist-Priolo: prohibits most structures within 50 feet of active fault trace

• SGMA (2014): Sustainable Groundwater Management Act; governs aquifer depletion

• Wildfire risk: VHFHSZ designation; sellers must disclose; homeowner's insurance increasingly difficult to obtain in CA fire zones

Common Exam Traps

• TDS CANNOT be waived (even in as-is sales or foreclosures by institutional lenders)

• 3/5 day rescission: 3 days personal delivery; 5 days mail

• Agent AVID is independent of seller's TDS — both required

• AIDS deaths: NEVER disclose regardless of when it occurred (HIV/AIDS is protected under CA law)

• Prop 13: assessments may ONLY increase by max 2%/year until property transfers

• Mello-Roos special taxes are NOT capped by Prop 13 and can be substantial

• FIRPTA: buyer must withhold 15% if seller is foreign national (not 10% — rate increased to 15%)