J & N REALTY, INC.

Purchase and Sale Documents  

__  Builders must provide buyers with a minimum one-year express written limited warranty covering the fit and finish of cabinets, mirrors, flooring, interior and exterior walls, countertops, paint finishes, and trim (CC §900; see discussion in §10.97). CC §903.

__  If a builder elects to offer an enhanced protection agreement (EPA) (see §10.98), the election to use that alternative agreement must be made in writing with the owner no later than the close of escrow. CC §903. Accordingly, that election should be made as part of the closing documents (e.g., as an addendum to the purchase and sale agreement). 

__  If a builder elects to use an EPA (see §10.98), the builder must provide the owner with a complete copy of CC §§896-897 and advise the owner that the builder has elected not to be subject to its provisions. CC §903. 

__  If the builder desires to obligate the owners to follow reasonable maintenance obligations and schedules, those schedules and obligations must be communicated to the owner in writing (by both the builder and product manufacturers). CC §907. See §10.99. (Although not required by the statute, the best practice would be to communicate these obligations and schedules before the close of escrow.) 

__  The initial sales documentation must include copies of all maintenance and preventative maintenance recommendations that the builder recommends that the buyer pursue with respect to the residence. CC §912(b) (see §10.102). 

__  In conjunction with the initial sale of the residence, builders must provide the owner with copies of all manufactured products maintenance, preventive maintenance, and limited warranty information. CC §912(c). Later, in the dispute resolution process under the statutory rules, builders are obligated to furnish that same information within 30 days after receipt of a written request for the documents (see §10.102). 

__  In connection with the initial sale of residences, builders must give owners copies of all of the builder’s limited contractual warranties that are in effect at the time of the original sale of the residence. CC §912(d) (see §10.100). 

__  The sales documents for the initial sale of a residence (with a place for the buyer and seller to initial and acknowledge) must disclose the name and address of the agent for notice (or third party designated for that purpose) for tender of owners’ claims. CC §912(e) (see §10.100). 

__  The original sales documentation (with a place for the buyer to initial and acknowledge) must disclose the existence of the Builder’s Right to Repair Law procedures and state that these procedures impact the legal rights of the owners. In addition, builders must record on title a notice of the existence of the Builder’s Right to Repair Law procedures and that the procedures impact the legal rights of owners. The recorded notice requirement may be satisfied by including an appropriate provision in the declaration of a common interest development. CC §912(f). 

__  Builders must, as a part of the original sales documentation furnished to the initial buyer, provide a complete written copy of the Builder’s Right to Repair Law, and the sales documents must have a place for that receipt to be initialed and acknowledged by both the buyer and the builder’s sales representative. CC §912(g). 

__  The original sales documents should prominently advise the initial buyers that they have an obligation to provide to subsequent buyers of the residence “any documents provided in conjunction with the original sale.” CC §912(h). The most logical interpretation of this requirement is that the first seller need not provide documents that are germane only to that seller’s deal with the builder, but rather that the first seller must provide subsequent buyers with the additional disclosure information required to be provided to the first seller under the Builder’s Right to Repair Law.