TDS to be Amended for Home Safety Devices

Starting January 1, 2011, the Real Estate Transfer Disclosure Statement (TDS) will be amended to streamline the disclosure of home safety devices. First, the TDS will include a new disclosure of whether the seller has a carbon monoxide detector. This disclosure addresses a new law requiring California homeowners to install or plug in a carbon monoxide device in an existing single-family residence by July 1, 2011 (next year), and other existing dwelling units by January 1, 2013. The new TDS will specifically state that installation of a carbon monoxide detector, among other appliances and devices, is not a precondition of sale or transfer of the dwelling.

Second, the TDS will be amended to incorporate a seller’s certification that, by close of escrow, the seller will be in compliance with existing requirements for smoke detector and water heater bracing. Effective January 1, 2011, the new TDS will eliminate the need for a separate standard form Water Heater and Smoke Detector Statement of Compliance (C.A.R. Form WHSD) for applicable transactions.

The new requirement to install or plug in a carbon monoxide detector will apply to dwelling units with a fossil fuel burning heater or appliance, fireplace, or attached garage. “Fossil fuel” means fuel gases, wood, oil, coal, kerosene, or other petroleum or hydrocarbon products that emit carbon monoxide as a combustion byproduct. Special rules apply to residential landlords.

C.A.R. will update our standard form TDS in the November 2010 forms release to reflect these changes, and provide members with more information about this law as the effective date draws nearer. The full text of this law, Senate Bill 183 (Lowenthal), is available at www.leginfo.ca.gov.