Bill Text: CA SB1366 | 2023-2024 | Regular Session | Amended

California Senate Bill 1366

Bill Title: Real property disclosure requirements: domestic water storage tank assistance.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2024-04-18 - In Assembly. Read first time. Held at Desk. [SB1366 Detail]

Download: California-2023-SB1366-Amended.html

Amended IN Senate April 04, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 1366

Introduced by Senator Hurtado

February 16, 2024

An act to add Section 1102.156 to the Civil Code, relating to real estate.

LEGISLATIVE COUNSEL'S DIGEST

SB 1366, as amended, Hurtado. Real property disclosure requirements: ~~water tank assistance.~~ domestic water storage tank assistance.

Existing law requires that specified disclosures be made upon any transfer by sale, exchange, real property sales contract, lease with an option to purchase, any other option to purchase, or ground lease coupled with improvements, of any single-family residential property.

Existing law authorizes the State Water Resources Control Board to provide grants to eligible applicants to be used to provide interim relief, as specified, to households in which a private water well has gone dry, or has been destroyed, due to drought, wildfire, or other natural disaster.

This bill would, if the residential real property has received water tank assistance, require the seller or real estate agent, as defined, to disclose specified information in writing. The bill would define “water tank assistance” as any assistance provided to homeowners under the above-described grant program in the form of water tanks due to water well issues during emergencies. The bill would also require disclosures regarding water tank assistance, if applicable to the property, during property tours and in all marketing materials, property listings, and any communication related to the sale of the property.
This bill would require a seller of any real property who received domestic water storage tank assistance or is aware the real property received such assistance and the real property currently still has the domestic water storage tank to deliver a disclosure statement to the prospective buyer. The bill would prescribe certain information to be included in the disclosure, including that the property has a domestic water storage tank provided by a county, community water system, local public agency, or nonprofit organization, as specified, and that the domestic water storage tank might not convey with the real property.

Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 1102.156 is added to the Civil Code, immediately following Section 1102.155, to read:

1102.156.
On or after January 1, 2025, in addition to any other disclosure required pursuant to this article, a seller of any real property who received domestic water storage tank assistance pursuant to Section 13194 of the Water Code, or is aware the real property received such assistance and the real property currently still has the domestic water storage tank, shall deliver to the prospective buyer a disclosure statement that includes all of the following information in substantially the following form:
(a) This property has a domestic water storage tank provided by a county, community water system, local public agency, or nonprofit organization, pursuant to Section 13194 of the Water Code.
(b) The domestic water storage tank was made available to households that had a private water well that had gone dry, or had been destroyed due to drought, wildfire, other natural disasters, or was otherwise nonfunctioning.
(c) The domestic water storage tank provided pursuant to Section 13194 of the Water Code might not convey with the real property.
(d) Due to the water well issues that led to this property obtaining assistance pursuant to Section 13194 of the Water Code, the buyer is advised to have an inspection of the water well and to have a professional evaluate the availability of water to the property to ensure it suits the purposes for which the buyer is purchasing the property.

SECTION 1.Section 1102.156 is added to the Civil Code, immediately following Section 1102.155, to read:
1102.156.
~~(a)For purposes of this section, the following definitions apply:~~
~~(1)“Real estate agent” includes a real estate agent and any other individual or entity engaged in the business of buying, selling, or leasing real estate.~~
~~(2)“Water tank assistance” means any assistance provided to homeowners, pursuant to Section 13194 of the Water Code, in the form of water tanks due to water well issues during emergencies.~~
~~(b)(1)If residential real property subject to this article has received water tank assistance, the seller or real estate agent shall disclose the following information in writing:~~
~~(A)Details of the water well issue that led to the water tank assistance.~~
~~(B)Information about the water tank assistance received during the emergency.~~
~~(C)A notice that the water tank does not convey with the property.~~
~~(2)The disclosure required by paragraph (1) shall be included in all marketing materials, property listings, and any communication related to the sale of the property, if applicable.~~
(3)During property tours, a real estate agent shall verbally communicate information about the water tank assistance and ensure potential buyers are aware that the water tank does not convey with the property, if applicable.
(c)Prior to the execution of a sales contract, the buyer shall acknowledge in writing that they have received and understood the disclosure described in subdivision (b), if applicable. The acknowledgment shall be retained as part of the transaction records.
~~(d)This section shall apply to all transactions subject to this article that are initiated on or after January 1, 2025.~~