Added Calif. Civil Code §1102.156
Effective date: January 1, 2025
Bill text: SB 1366
Why this matters: Residential property for sale equipped with a state-assistance water tank requires the seller and seller broker to disclose to prospective buyers that the water tank is not part of the property acquired.
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]
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