Legal Question in Real Estate Law in California

Re: Bank Owned Death Disclosure requirements

The bank may not have been required to disclose that fact. California Civil Code, Section 1710.2 provides:

"(a) No cause of action arises against an owner of real property or his or her agent, or any agent of a transferee of real property, for the failure to disclose to the transferee the occurrence of an occupant's death upon the real property or the

manner of death where the death has occurred more than three years prior to the date the transferee offers to purchase, lease, or rent the real property, or that an occupant of that property was afflicted with, or died from, Human T-Lymphotropic Virus Type III/Lymphadenopathy-Associated Virus. As used in this section, "agent" includes any person licensed pursuant to Part 1 (commencing

with Section 10000) of Division 4 of the Business and Professions Code. As used in this section, "transferee" includes a purchaser,

lessee, or renter of real property.

"(b) It is the intention of the Legislature to occupy the field of regulation of disclosure related to deaths occurring upon real property and of AIDS in situations affecting the transfer of real property or any estate or interest in real property.

"(c) This section shall not be construed to alter the law relating to disclosure pertaining to any other physical or mental condition or disease, and this section shall not relieve any owner or agent of any obligation to disclose the physical condition of the premises.

"(d) Nothing in this section shall be construed to immunize an owner or his or her agent from making an intentional misrepresentation in response to a direct inquiry from a transferee

or a prospective transferee of real property, concerning deaths on the real property."

Re: Bank Owned Death Disclosure requirements

The agent is correct.