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.