Requires Disclosure of Condition : New Home Sales Law Could Trip Up Owners

A little-known law that takes effect Jan. 1 holds a few surprises for some of 5 million home owners in California when they sell their property.

The law requires a property owner to disclose the mechanical and structural aspects of property with one to four units on a form specified by the state Legislature. The form asks for the condition of the electrical, heating and plumbing systems, the foundation, the site, building exterior, roof and other items. It also asks questions regarding zoning, room additions, neighborhood noise and landfills.

The law will hold home sellers liable for the accuracy of their answers.

“Most home owners really don’t know the condition of these technical items,” said Ben Vitcov, director of consumer information for the California chapter of the American Society of Home Inspectors.

“When was the last time you were on your roof or in the crawl space under the house?” he said. “And if you did go to these areas, would you know what to look for?”

He said the law is needed but “the difficulty is that the responsibility is not being placed in the proper hands. The state is asking someone without the proper knowledge to make serious judgments and be liable for those comments.”

The law is expected to create a business boom for home inspection companies, which offer expert analysis of the condition of a house.

Vitcov, president of Property Inspection Service, the largest home inspection firm in Northern California, estimated that only one in four homes sold in metropolitan areas in California undergoes inspection by a professional firm.

Industry projections are that the frequency will jump to one in three homes in 1987 and over four in 10 by 1988.