In California, real estate transactions come with the obligation for sellers to disclose all known material defects that may impact the property’s value. This is true even for properties sold “as-is.” (Review our in depth article on as is or “as is” or “as-is” sales here.) However, certain sellers, including trustees, may be exempt from completing some of the standard disclosure forms, like the Transfer Disclosure Statement (TDS). At Lucas Real Estate, we specialize in helping trustees navigate these complex transactions, particularly in Newport Beach and Costa Mesa.
Trustee and Fiduciary Exemptions: Understanding Your Responsibility
Under California Civil Code Section 1102.2(d), trustees managing the sale of a property as part of a trust are often exempt from completing extensive disclosure forms. But, there’s an important exception: if the trustee has lived in the property within the past year or was a former owner, they are not exempt. Trustees who mistakenly believe they’re exempt must understand that this law was designed to exclude those with no personal knowledge of the property—such as someone whose parent passed away and left them a Newport Beach home, while they themselves have lived out of area for the past decade.
However, even when exempt, trustees are still required to disclose any material facts they are aware of, such as a leaking roof or major repair issues. There’s no escaping the obligation to disclose known defects, even if you are exempt from filling out the full disclosure paperwork.
To simplify the process, many exempt sellers in Newport Beach and Costa Mesa will complete an Exempt Seller Disclosure Form, which ensures that they disclose key issues—such as a recent death on the property—that could affect the value or desirability of the home.
Simplified Paperwork, Same Obligation to Disclose
While trustees may have less paperwork to deal with, there’s no way around disclosing important information that could affect the sale of the property. If you’re selling a property in Newport Beach or Costa Mesa, you may be exempt from completing certain forms, but you cannot bypass the requirement to reveal material facts that might impact the property’s value.
At Lucas Real Estate, we understand that selling a property during difficult times, especially when managing a trust, can be overwhelming. Our team, with deep expertise in legal and accounting matters, is exceptionally skilled in guiding trustees through these complex transactions. We’re here to make the process smoother and ensure compliance with California’s real estate laws.
Let Lucas Real Estate Guide You
Whether you’re a trustee managing the sale of a family home in Newport Beach or a fiduciary responsible for a property in Costa Mesa, we can help. With our extensive legal and accounting backgrounds, Lucas Real Estate is the trusted expert in handling trustee sales. Let us guide you through this challenging time with confidence and clarity.
At Lucas Real Estate, we pride ourselves on expertly navigating these complexities, providing our clients with peace of mind that every detail is handled with the utmost professionalism. For more guidance on real estate transactions in Newport Beach, Costa Mesa, and the surrounding coastal communities, contact us today.
For more insights and professional real estate services in Newport Beach, Costa Mesa, and the coastal areas of Orange County, contact Lucas Real Estate today. Let us guide you through your next property transaction with confidence and clarity.
Contact us anytime via phone (949-478-1623) or email ([email protected])
Lucas Real Estate – Your Partner in Luxury Real Estate and Legal Guidance in Newport Beach and Coastal Orange County
– Devin Lucas
Author Devin R. Lucas is Real Estate Professional – a Real Estate Attorney, Broker and REALTOR® – specializing in Newport Beach, Costa Mesa and Orange County coastal communities, serving individuals and Trustees in residential real estate.
Lucas Real Estate – Attorney Devin Lucas and CPA Courtney Lucas – are experts in California Real Estate sales, capital gains issues and property tax matters including Propositions 13, 58, 193, 60, 90 and new Proposition 19.
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Lucas Real Estate is a unique full-service residential real estate brokerage providing related residential real estate legal services and real estate tax considerations and planning, based in Newport Beach, California. | Devin Lucas is a licensed California Real Estate Attorney, Real Estate Broker and REALTOR® | Courtney Lucas is a California licensed CPA and REALTOR®
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