This booklet is available to buyers’ agents when preparing a purchase agreement offer for a residential dwelling, to hand to their buyer in compliance with the mandated disclosure of information on environmental hazards.
A seller or seller’s agent’s disclosure of their personal knowledge of any existing environmental hazards on a one-to-four unit single family residence (SFR) is mandated on the sale, exchange or lease of all types of property.
The seller and the seller’s agent disclose environmental hazards in the TDS under the “Seller’s Information” category at Section C. For comprehensive disclosure information, RPI’s (Realty Publications, Inc.)’s Hazards Disclosure Booklets reviews common environmental hazards which may exist on any property. [Calif. Civil Code §2079.7; see RPI Form 316-1]
Section A of the Hazards Disclosure Booklets, called Residential Environmental Hazards: A Guide for Homeowners, Homebuyers, Landlords and Tenants, is not a disclosure of detrimental environmental conditions which exist on a particular property. Rather, the section contains general information on a variety of environmental hazards, none of which might physically exist on the subject property. The seller’s agent voluntarily delivers the guide to the buyer, but there is no legal mandate to do so. [CC §2079.7(b); See RPI Form 316-1]
The guide includes a discussion about the significance of hazardous materials and conditions, and tips for identifying, locating and mitigating the hazards, as well as the symptoms experienced by humans resulting from the hazards.
A provision in the purchase agreement confirms delivery of the booklet. [See RPI Form 150 §12.6]
Once the booklet is delivered – by hand or digitally – in conjunction with the TDS, the seller’s agent’s disclosure of environmental hazards concludes. The delivery of these items eliminates any further duty the seller’s agent has in advising the prospective buyer about the existence of environmental hazards. [CC §2079.8]
Thus, when a hazardous condition disclosed in the TDS is addressed in the booklet, the disclosure of the condition in the TDS together with the booklet covers the extent to which the seller’s agent goes to provide a full disclosure about the existence and nature of that hazardous condition.
For the purposes of the seller’s side of the transaction, the agent and seller need to say nothing more to the buyer beyond timely providing them the TDS and the booklet to make the disclosures known, unless the buyer inquires further – which requires an honest and complete response.
For the purposes of the buyer’s side of the transaction, it is prudent practice for the buyer’s agent to deliver the full booklet to their buyer.
Here, the buyer’s agent uses the narrative provided in the booklet to educate the buyer about the consequences of any hazards actually existing on the property as noted in the TDS. Thus informed, the agent may prepare an offer for a price and set of terms reflecting the buyer’s consideration of the disclosed defects.
Further, counseling about the effect of hazards on the value of the property serves to mitigate the risk of claims from the buyer that the buyer’s agent failed to inform the buyer about the known consequences of the hazards disclosed by the seller and their agent.
RPI’s Hazards Disclosure Booklets contains numerous government consumer education publications, including:
- Section A: Residential Environmental Hazards: A Guide for Homeowners, Homebuyers, Landlords and Tenants, discussed above;
- Section B: Protect Your Family From Lead in Your Home;
- Lead-Based Paint Disclosure – On Sale of Real Estate [See RPI Form 313];
- Section C: The Homeowner’s Guide to Earthquake Safety;
- Residential Earthquake Hazards Report [See RPI Form 315];
- Section D: Natural Hazard Disclosure Statement and Buyer Receipt of Hazards Booklet(s) [See RPI Forms 314 and 316]; and
- Section E: What is Your Home Energy Rating?
RPI’s Hazards Disclosure Booklets combine all of the above government documents, and related RPI forms, into one single publication for easy delivery by hand, mail or digitally.
Form navigation page published 06-2021.
Form last revised 2019.
