In almost all traditional sales, the seller is required by California law to provide a Seller Property Disclosure Statement (SPDS) to the buyer within first 5 days after a purchase offer had been accepted by the seller and buyer within the 10 day inspection period. Buyers who purchase a bank foreclosure will not receive a SPDS. Banks are exempt from having to provide the buyer a SPDS. Some Short Sale sellers and Investors think they are exempt from providing a SPDS. They are not!

The SPDS will reveal material facts about the physical condition of the property known by the seller and lists repairs the seller is aware were made. The Seller Disclosure (SPDS) does not take the place of a buyer's inspection that is usually made after a contract is agreed upon. The purpose of the inspection is to find major - not cosmetic - defects in the home. It is highly advisable to hire a professional inspector to do this.

In the event a major defect is discovered and the buyer and the seller cannot agree upon a resolution of the problem, the buyer may elect to cancel the ........ (Click Here to Continue Reading!)