Project Updates
REVIEW OF DISCLOSURE DOCUMENTS
We have completed our review of disclosure documents used during California home sales. Disclosure documents alert buyers to potential defects in the home, including the presence of specific environmental hazards such as lead and formaldehyde. Here is a summary of what we learned!
Environmental hazards are addressed by two documents that are required by California law.
- The California Real Estate Transfer Disclosure Statement (TDS) — The Disclosure Statement is filled out by the seller and informs buyers of any defects in the property, including residential environmental hazards such as asbestos, carbon monoxide, formaldehyde, hazardous waste, and lead. It does not include tobacco smoke on the list of environmental hazards.
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California Residential Environmental Hazards: A Guide for Homeowners, Landlords, and Tenants (2011) — The Guide includes educational information about residential environmental hazards and remediation, including asbestos, carbon monoxide, formaldehyde, hazardous waste, lead, mold, and radon. It does not include information on tobacco smoke as an environmental hazard.
Environmental hazards are addressed by one other document that is not required by California law.
- The C.A.R. Seller Property Questionnaire (SPQ) — The Questionnaire is filled out by the seller and informs buyers of defects and characteristics of the property.
Summary: A review of documents reveals that (1) disclosure of the history of tobacco use in a home is not required by California law, (2) disclosure of tobacco use and vaping in a home is required by the California Association of Realtors, and (3) there are no requirements for education of buyers or sellers about tobacco smoke residue.
SUMMARY OF REAL ESTATE PROFESSIONALS
Between 10/15/2024 and 12/18/2024, real estate agents and home appraisers who work in California were invited to respond to an online survey.
Real estate agents (n=11) surveyed ranged in age from 43-74 and had an average of 17 years of experience in the industry. Just over half (55%) were female.
Home appraisers (n=17) surveyed ranged in age from 32-79 and had an average of 27 years of experience in the industry. Nearly 2/3 (65%) were male.
Data analysis of the survey results is in progress.
Our survey of real estate professionals in California is in progress.
- We ask about:
- Their experience selling or appraising homes that have been smoked in.
- Their opinion on a law or regulation requiring disclosure of thirdhand smoke in home sales.
- Their knowledge and attitudes toward thirdhand smoke.
- Their demographics.
We have begun preliminary analysis of the survey responses.
We have reviewed and summarized current seller disclosure documents used in home sales.
Thirdhand smoke residue can stay in a home for years and cause physical symptoms to the residents. The residue is almost impossible to fully remove, and many people would not buy a home if they knew the previous owner smoked inside. However, the State of California does not require sellers to disclose the smoking history inside of a home. The Policy Center wants to get California to require disclosing smoking history.
We will conduct three Rapid Response Projects to answer these questions:
1. What are real estate agents’ thoughts on thirdhand smoke disclosure?
We will survey members of the California Association of Realtors and independent real estate agents.
2. How do other stakeholders feel about disclosing thirdhand smoke?
We will survey appraisers, home inspectors, lenders, and remediation contractors.
3. What makes a disclosure policy successful?
We reviewed all required documents used in California real estate transactions or consumer education about environmental hazards as well as any disclosure documents used in other jurisdictions.
Deliverables:
- Infographic presentations of the survey and interview results
- A presentation for trade organizations, such as the California Association of Realtors San Diego Chapter
- Educational material for home sellers/buyers and other stakeholders
- Model language created with the Public Health Law Center for required and voluntary disclosure forms
