FACTS:                    

Two (2) weeks before close of escrow, there was a torrential downpour.  The seller discovered a leak in the roof over the garage and now needs to disclose this information to the buyer. The seller does not want to go through the exercise of reviewing and updating the Seller’s Property Disclosure Statement (SPDS).

ISSUE:                      

Does the seller have to notify buyer of the change in the Premises by updating the SPDS? 

ANSWER:                

See discussion. 

DISCUSSION:         

Section 4f of the Residential Resale Real Estate Purchase Contract provides that the seller must notify the buyer “of any changes in the Premises or disclosures made herein, in the SPDS, or otherwise.”  Because the seller just discovered a leak and it was not previously disclosed, the seller must notify the buyer of the change in Premises and may do so by using the Notice / Disclosure Form instead of updating the SPDS.