"Real Property Sewage System Risk Assessment and Conditions Disclosure Act"; requires sellers of residential real estate to provide for sewage system inspections and disclose certain conditions; establishes penalties.
Impact
This bill aims to enhance consumer protection in real estate transactions by requiring sellers to facilitate a professional inspection of sewage systems. The requirement for sellers to disclose past problems, repairs, and installations creates a more transparent buying process, beneficial to both buyers and real estate professionals. Additionally, this legislation addresses ambiguities that have historically hindered effective disclosure, clearer definitions regarding seller responsibilities are expected to reduce disputes and litigation risks related to undisclosed sewage system issues.
Summary
Assembly Bill A5145, known as the 'Real Property Sewage System Risk Assessment and Conditions Disclosure Act', mandates that sellers of residential real estate must conduct sewage system inspections and disclose specific conditions related to those systems. The legislation stems from concerns regarding the hidden risks associated with sewage systems, which can significantly impact property value and buyer safety. This act ensures that potential buyers receive crucial information that could affect their purchasing decisions, equipping them with necessary knowledge prior to finalizing any transaction.
Contention
Despite its benefits, A5145 has prompted discussions regarding the potential financial burden on sellers, especially those who may face unexpected costs from necessary repairs or inspections. Critics argue that this requirement could dissuade potential sellers from entering the market due to financial and logistical constraints. Proponents, however, assert that the law ultimately leads to more informed purchasing decisions, reducing the likelihood of costly post-sale disputes regarding sewage system conditions.
Requires property condition disclosure statement to include questions concerning lead plumbing and lead service lines; requires lead service lines to be replaced upon sale of residential property.
Concerns inspection information distribution; provides DCA and property management entities with certain responsibility to provide and maintain contact information for owners of residential rental property and planned real estate development associations.