| SF Real Estate Buzz - Prop B Info for Sellers of 2 units and up | July 19th, 2006 |
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This text comes from a recent SF Associationi of Realtors (SFAR) newsletter: As REALTORS® will remember, Proposition B makes it unlawful for a landlord when offering a property for sale that includes two or more residential units to knowingly fail to disclose in writing to any prospective purchaser: The specific legal ground(s) for the termination of the tenancy of each residential unit to be delivered vacant at the close of escrow; and… Whether the unit was occupied by an elderly or disabled tenant at the time the tenancy was terminated. The drafters of Proposition B originally contemplated that the disclosure required by the proposition would be required in all marketing material and advertising. But in view of the myriad of ways properties can be marketed today and the practical problems associated with making the disclosure to any prospective purchaser, the text of the proposition was changed before it was placed on the ballot to create a “safe harbor” for compliance. The “safe harbor” language reads as follows: “Any disclosure that is made on a flier or other document describing the property which is made available to prospective purchasers at each open house and at any tour through the property will constitute compliance with the disclosure requirements of the ordinance.” Proposition B does not provide any guidance as to how the disclosure is to be made “available” or which individuals are to be considered “prospective purchasers.” But, given this uncertainty, here’s how the Association believes REALTORS® representing sellers should comply with the Proposition B disclosure requirement: Use the attached multi-purpose disclosure note- make sure your Realtor has this to comply with San Francisco’s two eviction disclosure laws. The two laws provide as follows: Prior to entering into a contract for the sale of any property consisting of two or more residential units, it shall be unlawful for a landlord to knowingly fail to disclose in writing to the buyer the specific legal ground(s) for the termination of the tenancy of each residential unit to be delivered vacant at the close of escrow. The attached multi-purpose disclosure has three parts: (1) The landlord’s disclosure; (2) The text of Proposition B, as well as the text of the vacant unit disclosure ordinance passed in 2002; (3) An agent’s acknowledgement for use in documenting that the form was made available at all open houses and property tours. Use a separate disclosure for each residential unit to be delivered vacant at the close of escrow. To address the vagueness of the proposition’s “made available” language, and out of an abundance of caution, either: Post the required disclosure in a conspicuous location in the property for sale at each open house and any property tour; or Place the required disclosure in a disclosure binder in a conspicuous location in the property for sale at each open house and any property tour. By proceeding in this manner, the disclosure will be made available to everyone who enters the property, hence to any “prospective purchaser.” Members seeking specific advice regarding Proposition B should consult with a qualified attorney. |
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Unless you are selling a building with 2 units or more, I suggest you skip this post. What follows is dry as toast.