Unique Factors and Conditions Affecting Property — RPI Form 308

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This form is used by a seller’s agent when preparing a marketing package for the sale, exchange, lease or option of a one-to-four unit residential property, to disclose the existence of unique factors or conditions which may adversely affect the property or its immediate vicinity.

Your use of RPI Form 308

External material facts affecting the property’s value

A broker and their agent, with authority to exclusively representative a seller of a one-to-four unit residential property, takes reasonable steps to promptly gather all material facts about the property which are readily available to the seller, the seller’s broker or the broker’s agent. Further, the broker’s and agent’s duty owed the seller to disclose to prospective buyers material facts known to them is not limited merely to disclosures of the property’s physical condition.

When the seller or seller’s agent considers property disclosures, there are two operative phrases from case law to keep in mind:

readily available information; and
relevance to a buyer’s decisions.

In addition to a property’s physical condition, neighborhood and area conditions which adversely affect the property’s value and desirability are also considered material facts. Disclosure of facts yielding a negative effect on the value of property is required regardless of whether the negative effect is explicitly stated on a pre-printed transfer disclosure statement (TDS) form. Anything less is deceit, and thus a fraud on the buyer by the seller’s broker and agent. [Calif. Civil Code §§1102(a), 1102.3, 1102.8; see RPI Form 304]

Area factors and conditions known to the seller or the seller’s broker or agent which negatively affect a property’s value and desirability are disclosed to prospective buyers as soon as practicable (ASAP) — i.e., before a purchase agreement is entered into by the seller. In addition to the TDS, the seller’s broker discloses external factors unique to the subject property or surrounding area which affect a property’s value by using a disclosure form which specifically references the condition.

When the well runs dry

Owners of residential real estate occasionally receive state assistance when their water supply dries up in the form of a water tank from the State Water Resources Control Board.

The state-provided water tank belongs to the state, not the owner of the real estate.

When an owner markets their property for sale with a water tank, the seller broker discloses to potential buyers that the tank is state-owned. [See RPI Form 308 §11]

To make the disclosure, the seller broker provides the buyer a written disclosure of Unique Factors and Conditions Affecting Property and checks the box activating the water tank assistance disclosure with the following information:

the cause of the dry water well condition;
information about the Board providing the water tank assistance;
notice the water tank is not conveyed as part of the sale; and
notice the buyer needs to inspect the water tank or well and retain a professional to evaluate the suitability of the water for the buyer’s purposes. [See RPI Form 308 §11]

The disclosure is included in MLS listing data and all other marketing material and communications related to the sale of the real estate. [CC §1102.156]

The buyer acknowledges in writing the existence of a water tank on the property on receipt of the disclosure. The seller agent retains a copy of the buyer’s signed acknowledgement in their records. [See RPI Form 308]

Unique factors and conditions

The Unique Factors and Conditions Affecting Property form published by RPI (Realty Publications, Inc.) is used by a seller’s agent when preparing a marketing package for the sale, exchange, lease or option of a one-to-four unit residential property, to disclose to prospective buyers the existence of unique factors or conditions which may adversely affect the property or its immediate vicinity. [See RPI Form 308]

The Unique Factors and Conditions Affecting Property form lists several factors which may influence a buyer’s decision to purchase or the price they are willing to pay for a particular property. These factors and conditions include:

Notice of Airport in Vicinity– the property may be subject to some of the annoyances or inconveniences associated with proximity to airport operations [See RPI Form 308 §2];
Notice of Right to Farm– the property is located within one mile of a farm or ranch land designated on the current county-level GIS “Important Farmland Map,” issued by the California Department of Conservation, Division of Land Resource Protection [See RPI Form 308 §3];
Notice of San Francisco Bay Conservation and Development Commission Jurisdiction– the use and development of property within the commission’s jurisdiction may be subject to special regulations, restrictions and permit requirements [See RPI Form 308 §4];
Notice of Mining Operations– the property is located within one mile of a mine operation for which the mine owner or operator has reported mine location data to the Department of Conservation pursuant to Public Resources Code §2207 [See RPI Form 308 §5];
Notice of Industrial Use Zone– the property is located in or next to an Industrial Use Zone which allows manufacturing or commercial uses, or is affected by a nuisance resulting from its proximity to an Industrial Use Zone [See RPI Form 308 §6];
Notice of State or Federal Ordnance– the property is located within one mile of a former state or federal ordnance location, such as those used for military training purposes [See RPI Form 308 §7];
Notice of Contamination of a Controlled Substance– the property or immediate vicinity has been identified by a governmental health official as being contaminated by methamphetamine or another controlled substance or was the site of a former meth lab [See RPI Form 308 §8];
Notice of Death– a death has occurred on the property within the prior three years [See RPI Form 308 §9];
Notice of Insurance Claim Affecting the Property– an insurance claim affecting the property has been filed within the previous five years [See RPI Form 308 §10];
Notice of Domestic Water Storage Tank– a water storage tank has been provided by the state and may not convey with the property on a sale
[See RPI Form 308 §11]
; and
Notice of Other Conditions Affecting the property or immediate vicinity. [See RPI Form 308 §12]