The Santa Barbara Association of Realtors has decided to sue the City of Santa Barbara over its Zoning Information Report that’s required when a property is sold. The report has been a thorn in the SBAOR for a while. Personally, I do not agree with the Association’s position.
Throughout the State of California these reports often referred to as “Resale Inspections,” are required by most towns and cities in the state.
Real estate agents are supposed to disclose “anything that might affect one’s perception of value” which has long been a part of the disclosure process when selling a home. So, why is this a problem?
Even though these reports can sometimes be problematic, and have caused transactions to fall apart, the intent is to provide essential information to a prospective buyer regarding permits, and safety considerations.
I believe the construction of any structure, additions, or remodeling is done without a permit where required should be disclosed. Also, any safety considerations should be noted too. I also believe the City should work with Sellers if previous City inspections did not reveal or missed any issues when they acquired the property that is now a problem.
For real estate agents, it would seem, the Zoning Information Report should be ordered prior to taking a listing. This way many of the problems that these reports come up with can be addressed before marketing the property. It may be the most important inspection the buyer has.
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