[CA] With a commercial real estate private sale, are sellers and buyers by law required to provide disclosures, or can it be waived because you purchase property “as is”?
With a commercial real estate private sale, are sellers and buyers by law required to provide disclosures, or can it be waived because you purchase property “as is”?
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With a commercial real estate private sale, yes — there are still some mandatory disclosures, even in an “as is” sale.
If the property is located in a designated hazard area (e.g., flood zone, fire hazard zone, earthquake fault zone), the seller must provide a Consumer Information Booklet (Cal. Civ. Code 2079.7(a)) and a Natural Hazard Disclosure statement (Cal. Civ. Code 1103 - 1103.15)
Also, sellers may be required to disclose known environmental hazards — such as contamination, hazardous waste, or underground storage tanks.
Additionally, if the commercial property includes residential units built before 1978, federal law requires disclosure of known lead-based paint hazards.
Even though a commercial sale has fewer disclosure requirements than a residential one, best practice is still for the seller to disclose anything they’re aware of that could be considered a material defect — to protect themselves from accusations of fraud or misrepresentation.
And finally, if the property is leased, the seller must disclose existing lease agreements, tenant rights, and rent rolls.
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With a commercial real estate private sale, are sellers and buyers by law required to provide disclosures, or can it be waived because you purchase property “as is”?
Lexi, Chatbot
I understand your concern. Were there any specific disclosures or information that you were hoping to receive as part of this commercial real estate private sale?
No.
Lexi, Chatbot
Have you already signed any agreements or contracts regarding the purchase of the property that mention disclosures or the property being sold “as is”?
No, being sold as is.
Lexi, Chatbot
Is there anything else the Real Estate Lawyer should know before I connect you? Rest assured they’ll be able to help with disclosures.
Lexi, Chatbot
Is there anything else the Real Estate Lawyer should know before I connect you? Rest assured they’ll be able to help with disclosures.
Barrister
Hello and welcome to the site! My name is Barrister and I am a licensed attorney. I’m here to help with your situation.
Barrister
I know your question is important, but there may be a short delay in my responses as I work with several customers at once. I appreciate your patience.
Got it.
Barrister
Can you tell me what state you are in?
California.
Barrister
Thank you.
Barrister
With a commercial real estate private sale, yes — there are still some mandatory disclosures, even in an “as is” sale.
If the property is located in a designated hazard area (e.g., flood zone, fire hazard zone, earthquake fault zone), the seller must provide a Consumer Information Booklet (Cal. Civ. Code 2079.7(a)) and a Natural Hazard Disclosure statement (Cal. Civ. Code 1103 - 1103.15)
Also, sellers may be required to disclose known environmental hazards — such as contamination, hazardous waste, or underground storage tanks.
Additionally, if the commercial property includes residential units built before 1978, federal law requires disclosure of known lead-based paint hazards.
Even though a commercial sale has fewer disclosure requirements than a residential one, best practice is still for the seller to disclose anything they’re aware of that could be considered a material defect — to protect themselves from accusations of fraud or misrepresentation.
And finally, if the property is leased, the seller must disclose existing lease agreements, tenant rights, and rent rolls.
Yes. What other documents besides a purchase agreement, loan agreement, and deed of trust are required to put together?
The seller is carrying a mortgage on this sale. For those documents, a promissory note and a deed of trust would be the two documents needed, correct?
Barrister
Yes — you are correct:
- The Deed of Trust (DOT) is recorded in the public records.
- The Promissory Note is typically kept safe by the seller (in a safe or fireproof/waterproof box).
Thanks for your help today.
Barrister
You are very welcome. Glad I could help.
Barrister
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