New Law on Transmission Pipelines

Posted: March 26, 2013 in California Real Estate News

Important changes are coming to the California Association of REALTORS® Residential Purchase Agreement in response to new legislation effective July 1, 2013. AB 1511 (Bradford) requires every contract for the sale of residential real property to contain a specified notice regarding gas and hazardous liquid transmission pipelines. This notice informs buyers that the U.S. Department of Transportation maintains the general location of these pipelines through the National Pipeline Mapping System at www.npms.phmsa.dot.gov. This legislation was authored in response to the 2010 natural gas pipeline explosion in San Bruno that killed eight people and other similar tragedies that have occurred.

The disclosure of the National Pipeline Mapping System website will be similar to the disclosure of the “Megan’s Law” website. The only requirement for sellers and brokers will be the required notification of the website that will be added to the C.A.R. Residential Purchase Agreement (RPA) contract. This new law will not require any new additional separate disclosure if the then current C.A.R. RPA form is used.

The new pipeline notice provides a valuable shield from liability for sellers and brokers. Delivery of the notice to a buyer will be deemed to be adequate to inform the buyer about the existence of a statewide database for the location of gas and hazardous liquid transmission pipelines, and information from the database regarding these locations.

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