Hawaiian Gardens Municipal Code Ch. 16.08 Residential and Commercial Property Pre-Sale Inspection Program

The purpose of this chapter, in accordance with the provisions of California Government Code Sections 38780 et seq., is (1) to protect prospective buyers and/or transferees of residential and commercial property within the City of Hawaiian Gardens against undisclosed restrictions on the use of property and illegal construction of additions, alterations or improvements prior to the sale or exchange of such property; and (2) to minimize potential hazardous life or safety conditions, promote the proper maintenance of housing and commercial establishments and improve property values.

(Ord. 513 § 1, 2007)

For the purposes of this chapter, the following words and phrases shall have the meanings respectively ascribed to them by this section:

Agent means any salesperson, broker, real estate agent, real estate broker, title insurance company, escrow company or any employer or agent thereof.

Commercial property means any improved real property designed or permitted to be used for commercial purposes, including multi-tenant rental properties, situated in the City of Hawaiian Gardens.

Director means the Community Development Director, or his/her designated representatives.

Disclosure report means the report disclosing any restrictions on the use of the property, visible illegal construction, or other visible violations of the Building Code.

Guidelines means those administrative guidelines adopted by the Director to assist in the processing of any inspections and reports pursuant to this chapter.

Listing means any or all of the following actions with respect to a property: listing of the property on the multiple listing service, posting a "for sale" sign, advertising in any printed media that the property is for sale, distribution of flyers, or any other means giving notice that the property is for sale.

Owner means an individual, partnership, corporation or association having legal or equitable title or any interest in any real property containing a residential building subject to this chapter, or the authorized agent of any of the foregoing.

Residential property means any improved real property designed or permitted to be used for dwelling purposes, including multi-tenant rental properties and mobile homes/manufactured factory built housing, situated in the City of Hawaiian Gardens.

Rules and regulations means the rules and regulations promulgated by the City for regulation, administration and enforcement of the building codes and ordinances.

Sale or exchange means the transfer of title, change in ownership, sale, exchange, rent or lease with option to sell or purchase any residential or commercial property, excluding acquisition by eminent domain, acquisition by threat of eminent domain, or acquisition by gift or inheritance.

(Ord. 513 § 1, 2007)

Except as otherwise permitted pursuant to this chapter, it is unlawful for the owner of residential property or commercial property, or agent for the owner, to sell or exchange said property if any of the following exist upon the property:

A. Zoning or other major land use violations; or

B. Unpermitted structural additions, modifications or alterations, which are visible from a position external to the residential building structure or inside any garage or other uninhabitable or nonresidential structure including commercial properties.

The sale of residential or commercial property may only be executed if it is determined that the substandard conditions on the property have been corrected prior to the sale or exchange of any real property or be in compliance pursuant to Section 16.08.080 to the satisfaction of the Community Development Director.

(Ord. 513 § 1, 2007)

A. Within five days of the listing of a residential or commercial property in the City, and in no event no later than 21 calendar days prior to the transfer of title pursuant to a sale or exchange of any property in the City, the agent, or owner if there is no agent, shall submit an application to the City for a disclosure report, pursuant to Section 16.08.050.

B. The disclosure report shall be valid for a period of 180 days from the date of issuance and shall include one re-inspection without cost from the date of issuance.

C. The agent or owner shall provide any prospective purchaser of the property with a copy of the report as provided in Section 16.08.090.

(Ord. 513 § 1, 2007)

The agent or owner shall file with the Director a written application for a disclosure report, or an application for exemption, together with the applicable filing fee, on a form required by the Director. The filing fee shall be established by resolution of the City Council.

(Ord. 513 § 1, 2007)

Upon the filing of a complete application, the Director shall, in accordance with guidelines established by the Director, conduct a review of the pertinent City records and shall perform an inspection of the exterior of the residential or commercial building and the interior of any garage or other uninhabitable or nonresidential structure on the property, for the purpose of ascertaining compliance with relevant zoning regulations, and that any structural additions, modifications and alterations, apparent during inspection or review of permits on file, have been made with the appropriate permits. The disclosure report shall contain the following but is not limited to:

A. The street address or legal description of the property;

B. The zone classification, authorized uses, and any special restrictions in use or development as set forth in the Hawaiian Gardens Municipal Code or specifically applicable to the property;

C. Variances, conditional use permits, exceptions and other pertinent legislative acts of record;

D. The results of the visual inspection listing:

1. Visible zoning or other major land use violations,

2. Unpermitted structural additions, modifications or alterations, that are visible from a position external to the residential building structures, and

3. Unpermitted structural additions, modifications or alterations that are visible from a position inside any garage or other uninhabitable or nonresidential structure on the premises; and

E. A notice to the purchaser, in a form approved by the Director and the City Attorney, including, but not limited to, the following:

1. Notification that the scope of the field inspection is limited to structural additions, modifications or alterations apparent from a position external to the building structure and internal to the garage or other uninhabitable or nonresidential structure on the premises,

2. Notification that if the report reveals violations on the property the violations shall be remedied to the satisfaction of the Director prior to the sale or exchange of the property, and

3. That the omission from the report of any violation shall not act to prevent the City from thereafter causing the violation to be brought into compliance or abated.

(Ord. 513 § 1, 2007)

A. If the disclosure report reveals violations on the property, the Director may cause to be filed with the Los Angeles County Recorder, a declaration of substandard property giving notice that the property has been inspected and found to have violations on it, and that all owners of record have been so notified.

B. If the disclosure report reveals violations on the property, the agent or owner shall cause the identified violations to be remedied, request a reinspection and, if corrected to the satisfaction of the Director, obtain a certificate of correction from the Director.

C. If a declaration of substandard property has been recorded against the property and certificate of correction later issued, the Director shall cause to be filed with the Los Angeles County Recorder a termination of the declaration of substandard property, giving notice that the previously noted violations have been corrected.

(Ord. 513 § 1, 2007)

If the report reveals violations on the property, the owner may, in lieu of obtaining a certificate of correction prior to the sale or exchange of the property, submit a request to post funds with the City in an amount determined sufficient by the Director, for the correction of such violations. The Director shall review such request and shall either approve or deny the request in writing. If the request is approved, Director shall specify the amount of money to be posted, the timeframe within which the funds must be posted, the form of payment, and the timeframe within which the violations must be corrected to the satisfaction of the Director. If said violations are not corrected as required, the owner shall forfeit the funds and the City shall use the funds to effect correction of the violations.

(Ord. 513 § 1, 2007)

No later than 21 calendar days prior to the sale or exchange, the agent or owner shall deliver to the prospective purchaser a copy of the disclosure report, together with a certificate of correction or notification that funds have been posted with the City, if applicable. The purchaser shall execute a receipt for such delivery, on forms available from the Director, and file the receipt with the Director a minimum of five calendar days prior to the close of escrow as evidence of compliance with the provisions of this chapter.

(Ord. 513 § 1, 2007)

The provisions of this chapter shall not apply to the following:

A. The first sale of newly constructed residential or commercial buildings or condominiums owned by the developer of the residential or commercial building; provided a report shall be required if the owner/developer rented the building for a total of 18 months prior to the sale or exchange;

B. Transfers pursuant to court order, including, but not limited to, transfers ordered by a probate court in administration of an estate, transfers pursuant to a writ of execution, transfers by a trustee in bankruptcy, transfers by eminent domain, or transfers resulting from a decree for specific performance, except when a sale or transfer occurs to a third party;

C. Transfers to a mortgagee by a mortgagor in default, transfers to a beneficiary of a deed of trust by a trustor in default, transfers by any foreclosure sale after default, transfers by any foreclosure sale after default in an obligation secured by a mortgage, or transfers by a sale under a power of sale after a default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale, except when a sale or transfer occurs after a foreclosure;

D. Transfers by a fiduciary in the course of the administration of a guardianship, conservatorship, or trust, except if such transfer is a sale to a third party;

E. Transfers from one co-owner to one or more co-owners;

F. Transfers made to a spouse, or to the issue of one or more of the transferors;

G. Transfers between spouses resulting from a decree of dissolution of a marriage or a decree of legal separation or from a property settlement agreement incidental to such decrees;

H. The sale or exchange of a manufactured dwelling (mobile home) to the extent that the rules and regulations are preempted by State law;

I. Buildings or properties conveyed or acquired by the City.

(Ord. 513 § 1, 2007)

Any agent participating in a sale or exchange shall ensure compliance with the provisions of this chapter prior to any sale or exchange.

(Ord. 513 § 1, 2007)

Nothing in this chapter shall be construed to preclude the City from taking all available actions to enforce the provisions of any law, ordinance or regulation applicable in the City. Specifically, the omission from a disclosure report of any violation shall not act to preclude the City from thereafter causing any violation or illegal condition to be brought into compliance or abated. No liability shall accrue to the City for errors, omissions or inaccuracies in the disclosure report.

(Ord. 513 § 1, 2007)

To assist in processing the required actions and activities of this chapter, the Director may adopt any and all reasonable guidelines.

(Ord. 513 § 1, 2007)

Any person violating the provisions of this chapter shall be punishable as provided in Section 1.12.070 of the Hawaiian Gardens Municipal Code.

(Ord. 513 § 1, 2007)