CLOSING ESCROW WITHOUT DISCLOSURES

RE:   CLOSING ESCROW WITHOUT DISCLOSURES

Can An Agent Close Escrow Without An Agency Disclosures?

Civil Code §2079.15 allows an agent to close a residential transaction without a signed

agency disclosure. However, the agent must diligently document reasons why he/she could not

get the disclosure in a declaration containing the following information:

1.   The declaration must specifically identify the disclosure you cannot get;

2.   The declaration must specifically identity all efforts made by the agent to get the

disclosure. The agent must show that he/she made a good faith effort to obtain the

disclosure by making requests by telephone, facsimile and e-mail;

3.   The declaration must show that the agent told his/her client that he/she was unable

to obtain the disclosure;

4.   The declaration must be signed “under penalty of perjury” by the agent; and

5.   I recommend that the client sign the declaration acknowledging receipt.

The declaration must then remain part of the transaction file for a minimum of three (3)

years as required by California Business & Professions Code §10148.

Can An Agent Close Escrow Without Other Statutory Disclosures?

Civil Code § 1102.12 allows an agent to close a residential transaction without signed

statutory disclosures. However, identical to the agency disclosure, the agent must diligently

document reasons why he/she could not get the disclosure in a declaration containing the

following information:

1.   The declaration must specifically identity the disclosure you cannot get;

2.   The declaration must specifically identify all efforts made by the agent to get the

disclosure. The agent must show that he/she made a good faith effort to obtain the

disclosure by making requests by telephone, facsimile and e-mail;

3.   The declaration must show that the agent told his/her client that he/she was unable

to obtain the disclosure;

4.   The declaration must be signed “under penalty of perjury” by the agent; and

5.   I recommend that the client sign the declaration acknowledging receipt.

The declaration must then remain part of the transaction file for a minimum of three (3)

years as required by California Business & Professions Code § 10148.

Sample Form.

Although neither Civil Code nor California Association of Realtors® offer a sample

form, the following sample complies with the record keeping requirements imposed upon the

agent:

“1.   I, (Buyer’s/Seller’s Agent), have been unable to obtain a signed (Agency

Disclosure, Transfer Disclosure, Natural Hazard Disclosure, Lead Based Paint

Disclosure, Water Heater Bracing Disclosure, Smoke Detector Compliance

Disclosure).

2.   I have made a diligent and good faith effort to obtain the disclosure. I have made

telephone calls to (specify person) on the following dates demanding the

disclosure. I have sent facsimile and e-mails to (specify person) on the following

dates demanding the disclosure. Despite my efforts, I have been unable to obtain

the disclosure.

3.   On (specify date), I informed my client that I have not been able to obtain the

disclosure. I informed my client of the importance of this disclosure and advised

him/her to seek legal counsel prior to closing escrow without this disclosure.

4.   I declare under penalty of perjury under the laws of the State of California that the foregoing is true and

correct.

Date: _______ _ Sign: ________ _

I, (Buyer/Seller), acknowledge receipt of this declaration and understand its importance.

Date: ——– Sign: __________ ”

©

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