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Transfer Disclosure Statement (TDS) Required For ‘Mixed Use’ Properties Having Both Commercial and Residential Buildings

Posted on: March 25, 2014

In the recent appellate opinion of Randall S. Richman V. Mark Hartley  (2d Civil No. B245052

Filed 3/20/14), in a matter of first impression, the Court held that a Transfer Disclosure Statement  (“TDS”) is required in any transfer of real property “improved with or consisting of not less than one nor more than four dwelling units,” even if the property also has commercial uses.

In this case, (more…)

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Court of Appeals Expands Duties of Real Estate Brokers Representing Buyers

Posted on: March 17, 2014

Under the appellate case of Saffie v. Schmeling (E055716, 4th District Court of Appeal, March 7, 2014), the Court held that a buyer’s broker has an affirmative duty to investigate whether a parcel is suitable for the commercial plans of the buyer and whether the local government regulations prohibit the buyer’s anticipated land use. On the other hand, the court found that the seller’s broker had a more limited duty in this context.

In Saffie, the buyer planned to purchase a parcel to construct a commercial building. The buyer’s broker presented a parcel of land advertised on the multiple listing service (“MLS”) to the buyer. The MLS listing stated that there was a 1982 geology report finding “no evidence of an active fault” and the local government had granted final approval of the report that same year. The buyer’s broker obtained a copy of the report, but he did not read it or understand what a “fault hazard investigation report” was. He merely passed the report to the buyer and recommended buyer read it.

After the buyer purchased (more…)

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