Buying any real estate always comes with apprehension. It is not that you do not trust the previous owner, you just want to know what was going on before you decided to buy it. You wish there was a way you could sit on the couch on Saturday and just watch a video that compiled 10 years of the property’s history.

Obviously this service is not available. That is why when you buy a house you have it inspected, but what if you are buying land. Other than looking at it, there is not much information that can be obtained. Why is it vacant? What was it used for?

Realty Times columnist, Bob Hunt explains in his November 16, 2006 article, “New Form Will Provide Buyers with More Information about Lots and Land,” how California vacant land buyers can rest easier before making their big purchase by reviewing a required disclosure.

The California Association of Realtors (CAR) is going to release a new disclosure form this month that will help to provide essential information to buyers of lots and vacant land.

Just about everyone that has been associated with a property purchase in California knows that there are a variety of required disclosure forms that must be presented from seller to buyer prior to a sale. The most commonly known and used disclosure form in this regard is the Transfer Disclosure Statement (TDS).

However, “It is not so well known that the TDS is not required in the transfer of more than four units, commercial or industrial property, or vacant land.”

Sellers and agents still have to disclose information on every property sale regardless of what the property is, but the common form is just not always used.

“A little over a year ago, CAR introduced the Seller Property Questionnaire (SPQ). The SPQ is a three-page document encompassing 35 questions (plus ‘other’) grouped into 12 categories. This questionnaire was meant to supplement the legally-required TDS.”

The SPQ was implemented to counter for the deficiencies reported with the TDS. The two primary negatives with the TDS were that it left out a wide range of significant tops and the questions were only related to the present condition of the property and asked nothing about its past history.  

Now, the SPQ is an improved disclosure form but it essentially just replaced the TDS and its capabilities, which means that land and lot sellers still do not have to submit any formal disclosure forms. Even though not required by law, there is a new form that will cater to California lot and land buyers.

“The Seller Vacant Land Questionnaire (VLQ) has been modeled from the SPQ. Indeed, many of the categories of questions, as well as specific questions are the same. For example, both ask questions about the neighborhood. Are there nuisance noises? Is there parking congestion? Obviously, in the VLQ this is probably going to have more relevance to someone who buys a lot in a residential area than to a developer buying a thousand acres in the desert.”

Like the SPQ, the VLQ also asks about past history of lawsuits and other pre-existing conditions.

The SPQ and VLQ are becoming the standards for buyers obtaining disclosed information. In the near future, if the seller refuses to use the VLQ form when buying land in California (remember it is not required), you may want to look for another piece of land. It is better to be cautious, especially when purchasing uninhabited land.