California Assembly Bill AB1375

California 2021-2022 Regular Session

• Introduced: 2/19/21
• Refer: 3/4/21
• Failed: 2/1/22

Caption

Real property sales: disclosures.

Impact

The proposed amendment would extend the current termination period for buyers who receive disclosures after making an offer. Under AB 1375, buyers would have five days to terminate an offer if the disclosure is delivered in person and seven days if delivered by mail or electronically. This change aims to provide more protection for buyers by allowing them additional time to consider any changes to the disclosures that may affect their decision to proceed with the purchase.

Summary

Assembly Bill 1375, introduced by Assembly Member Bloom, seeks to amend the Civil Code regarding the disclosures required during real property sales transactions, specifically for single-family residences. The current law mandates that sellers provide specific written disclosures to prospective buyers. These disclosures must be delivered as soon as practical before the transfer of title or before executing a real property sales contract. If any disclosures are made after an offer to purchase is executed, the existing law allows buyers a limited time of three days to terminate that offer if the disclosures are delivered in person, or within five days if sent via mail or electronically.

Contention

Supporters of AB 1375 argue that extending the termination period enhances consumer protections and allows buyers to make better-informed decisions regarding their potential purchases. This could be particularly pertinent in cases where significant issues with the property are disclosed that could impact its value or the buyer's willingness to complete the sale. However, there may be opposition from sellers and real estate professionals who believe this extended period could complicate sales processes and lead to delays, potentially discouraging buyers and sellers from engaging in transactions.