(Editor’s Note: To answer some of the questions REALTOR® members have posed concerning the implementation of amendments to the Water Conservation Ordinance, Alex Weyand, the Association’s outside general counsel has prepared a short Q&A memorandum. The memorandum appears below. )
Q1: Are the new water and energy conservation amendments currently in effect?
A1: Yes.
Q2: What was the effective date?
A2: July 1, 2009.
Q3: What about SFAR’s lawsuit, didn’t it change the effective date?
A3: No. It is merely a lawsuit. It seeks—a lawyer word for “attempts to get”—a Court ruling suspending the law. But there are no guarantees or assurances a Court will agree with the Association’s position. So, members and their buyer/seller clients should comply with the new law until otherwise advised and not bet the lawsuit will win. It may not.
Q4: What about the DBI’s statement that it will not enforce the new law for the period July 1 to August 15, 2009?
A4: That regards enforcement by the city only. Buyers have a private, independent right to enforce the law too. That right was effective July 1, 2009.
Q5: Does the city have the necessary inspection forms yet?
A5: Yes. It appears the city issued them on August 14, 2009.
Q6: Has the city issued the “Informational Brochure” that can be used instead of the SFAR disclosure form?
A6: Yes. It appears it was issued the week of September 21, 2009 with an inaccurate date stamp of “July 2009.”
Q7: When should the new “Informational Brochure” be provided to the buyer?
A7: The law does not clearly state that when this disclosure must be provided to the buyer. The Association strongly recommends it be provided to the buyer with the TDS and other disclosures, and otherwise as soon as reasonably practicable.
Q8: Should REALTORS® get the buyer to sign an acknowledgement of receipt for the “Informational Brochure”?
A8: Yes. It is strongly recommended.
Q9: Does this law apply to new construction, including without limitation, condos?
A9: Yes for the water conservation law, every time the property (e.g., condo unit) is sold. No for the energy conservation law, so long as there is a recorded Energy Compliance Certificate or the property is otherwise exempt.
Q10: Is there an exemption for “fixer uppers” where, for example, the buyer is going to re-do the bathrooms after close of escrow?
A10: No. But the compliance requirements can be postponed for a year if there is a demolition permit on file before close of escrow.
- San Francisco Association of Realtors