Article 1.8 - Buyer’s Choice Act

California Civil Code — §§ 1103.20-1103.22

Sections (4)

Amended by Stats. 2024, Ch. 80, Sec. 19. (SB 1525) Effective January 1, 2025.

(a)The disclosures required by this article are set forth in, and shall be made on a copy of, the following Natural Hazard Disclosure Statement:
(b)If an earthquake fault zone, seismic hazard zone, high or very high fire hazard severity zone, or wildland fire area map or accompanying information is not of sufficient accuracy

or scale that a reasonable person can determine if the subject real property is included in a natural hazard area, the seller or seller’s agent shall mark “Yes” on the Natural Hazard Disclosure Statement. The seller’s agent may mark “No” on the Natural Hazard Disclosure Statement if the seller attaches a report prepared pursuant to subdivision (c) of Section 1103.4 that verifies the property is not in the hazard zone. This subdivision is not intended to limit or abridge any existing duty of the seller or the seller’s agent to exercise reasonable care in making a determination under this subdivision.

(c)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is no longer within a special flood hazard area, then the seller or seller’s agent may mark “No” on the Natural Hazard

Disclosure Statement, even if the map has not yet been updated. The seller or seller’s agent shall attach a copy of the Letter of Map Revision to the disclosure statement.

(d)If the Federal Emergency Management Agency has issued a Letter of Map Revision confirming that a property is within a special flood hazard area and the location of the letter has been posted pursuant to subdivision (g) of Section 8589.3 of the Government Code, then the seller or seller’s agent shall mark “Yes” on the Natural Hazard Disclosure Statement, even if the map has not yet been updated. The seller or seller’s agent shall attach a copy of the Letter of Map Revision to the disclosure statement.
(e)The disclosure required pursuant to this article may be provided by the seller and the seller’s

agent in the Local Option Real Estate Transfer Disclosure Statement described in Section 1102.6a, provided that the Local Option Real Estate Transfer Disclosure Statement includes substantially the same information and substantially the same warnings that are required by this section.

(f)(1) The legal effect of a consultant’s report delivered to satisfy the exemption provided by Section 1103.4 is not changed when it is accompanied by a Natural Hazard Disclosure Statement.
(2)A consultant’s report shall always be accompanied by a completed and signed Natural Hazard Disclosure Statement.
(3)In a disclosure statement required by this section, an agent and third-party provider may cause the agent and

third-party provider’s name to be preprinted in lieu of an original signature in the portions of the form reserved for signatures. The use of a preprinted name shall not change the legal effect of the acknowledgment.

(g)The disclosure required by this article is only a disclosure between the seller, the seller’s agent, and the prospective buyer, and shall not be used by any other party, including, but not limited to, insurance companies, lenders, or governmental agencies, for any purpose.
(h)In any transaction in which a seller has accepted, prior to June 1, 1998, an offer to purchase, the seller, or the seller’s agent shall be deemed to have complied with the requirement of subdivision (a) if the seller or agent delivers to the prospective buyer a statement that

includes substantially the same information and warning as the Natural Hazard Disclosure Statement.

Added by Stats. 2009, Ch. 264, Sec. 1. (AB 957) Effective October 11, 2009.

This article shall be known, and may be cited, as the Buyer’s Choice Act.

Added by Stats. 2009, Ch. 264, Sec. 1. (AB 957) Effective October 11, 2009.

(a)The Legislature finds and declares:
(1)Sales of foreclosed properties have become a dominant portion of homes on the resale real estate market.
(2)The recent troubled real estate market has resulted in a concentration of the majority of homes available for resale

within the hands of foreclosing lenders and has dramatically changed the market dynamics affecting ordinary home buyers.

(3)Preserving the fair negotiability of contract terms is an important policy goal to be preserved in real estate transactions.
(4)The potential for unfairness occasioned by the resale of large numbers of foreclosed homes on the market requires that protections against abuses be made effective immediately.
(5)The federal Real Estate Settlement Procedures Act (RESPA) creates general rules for fair negotiation of settlement services, prohibits kickbacks and specifically prohibits a seller in a federally related transaction from requiring a buyer to purchase title insurance from a particular insurer.
(6)California law does not

specifically prohibit a seller from imposing, as a condition of sale of a foreclosed home, the purchase of title insurance or escrow services from a particular insurer or provider.

(7)Therefore it is necessary to add this act to California law to provide to a home buyer protection that follows the RESPA model and applies to, and prevents, the conditioning of a sale of a foreclosed home on the buyer’s purchase of title insurance from a particular insurer or title company and/or the buyer’s purchase of escrow services from a particular provider.
(b)It is the intent of the Legislature that, for the purpose of this act, the sale of a residential real property is deemed to include the receipt of an offer to purchase that residential real property.

Added by Stats. 2009, Ch. 264, Sec. 1. (AB 957) Effective October 11, 2009.

(a)A seller of residential real property improved by four or fewer dwelling units shall not require directly or indirectly, as a condition of selling the property, that title insurance covering the property or escrow service provided in connection with the sale of the property be purchased by the buyer from a particular title insurer or escrow agent. This section does not prohibit a buyer from

agreeing to accept the services of a title insurer or an escrow agent recommended by the seller if written notice of the right to make an independent selection of those services is first provided by the seller to the buyer.

(b)For purposes of this section:
(1)Escrow service” means service provided by a person licensed pursuant to Division 6 (commencing with Section 17000) of the Financial Code, or exempt from licensing pursuant to Section 17006 of the Financial Code.
(2)“Seller” means a mortgagee or beneficiary under a deed of trust who acquired title to residential real property improved by four or fewer dwelling units at a foreclosure sale, including a trustee, agent, officer, or other employee of any such mortgagee or beneficiary.
(3)“Title

insurance” means insurance offered by an insurer admitted in this state to transact title insurance pursuant to Chapter 1 (commencing with Section 12340) of Part 6 of the Insurance Code.

(c)A seller who violates this section shall be liable to a buyer in an amount equal to three times all charges made for the title insurance or escrow service. In addition, any person who violates this section shall be deemed to have violated his or her license law and shall be subject to discipline by his or her licensing entity.
(d)A transaction subject to this section shall not be invalidated solely because of the failure of any person to comply with any provision of this act.