When selling in the city of Los Angeles, the seller needs to consider three elements to satisfy code compliance when selling. And this still applies even if you are selling a ‘as is’ property.
1) Certificate of Compliance for Water Conservation Retrofit, Department of Water and Power: A Certificate of Compliance has to be completed and signed during escrow by 1) A Licensed Retrofit Inspector, a Licensed Plumbing Contractor or Real Estate Broker, 2) the buyer and 3) the seller. This certificate states that the property is in compliance with the City of Los Angeles ordinances regarding low flow toilets and shower heads (water conservation measures). The completed Certificate of Compliance is filed with the LADWP at closing, along with a $15.00 fee, which is typically paid by the seller, but can be paid by any party in the transaction.
2) Residential Property Report (RPR): This report is required and issued by the City of Los Angeles, Department of Building and Safety. It has many different purposes to it. First, the purpose of the report is to inform buyers of potential or pending special assessments to the property, such as plans for new sewers or sidewalks, which the City of Los Angeles may be planning. Over the years, Building and Safety has added other items to this report as a way to make sure properties are in compliance with various minimum state code requirements at time of transfer. An application (completed by the seller and buyer) must be completed, including declarations that the property IS or WILL BE brought to compliance with the particular requirements of the City. This application is then sent to building and safety with a fee of $70.20, and the City then provides the Report. The report will include copies of permits issued on the property, and a report of pending assessments. A copy of the RPR is here.
3) Lastly, these items here are items that the seller is required to make sure are present and in good condition at time of transfer. The buyer may be responsible for these items only by mutual agreement. The best way to ensure compliance is to have a licensed retrofit company inspect the property. They will issue and sign the Certificate of Compliance and they will let the seller know if the property is in compliance with the City of LA’s Department of Building and Safety Requirements. This will enable the seller to more accurately complete the Application for the Residential Property Report (RPR). The retrofitter will generally also give an estimate of any work that needs to be done to bring the property into compliance at this time.
Here is a link to the fillable and printable 4 page 9a report. Hope this helps, call us with any questions you have have at 310-800-4418.
