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California Civil Code Section 2963

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The disclosures required to both purchaser and vendor by this
article are:
   (a) An identification of the note or other credit documents or
security documents and of the property which is the security for the
transaction.
   (b) A description of the terms of the promissory note or other
credit documents or a copy of the note or other credit documents.
   (c) Insofar as available, the principal terms and conditions of
each recorded  encumbrance which constitutes a lien upon the property
which is or will be senior to the financing being arranged,
including the original balance, the current balance, the periodic
payment, any balloon payment, the interest rate (and any provisions
with respect to variations in the interest rate), the maturity date,
and whether or not there is any current default in payment on that
encumbrance.
   (d) A warning that, if refinancing would be required as a result
of lack of full amortization under the terms of any existing or
proposed loans, such refinancing might be difficult or impossible in
the conventional mortgage marketplace.
   (e) If negative amortization is possible as a result of any
variable or adjustable rate financing being arranged, a clear
disclosure of this fact and an explanation of its potential effect.
   (f) In the event that the financing involves an all inclusive
trust deed, the disclosure shall indicate whether the credit or
security documents specify who is liable for payment or responsible
for defense in the case of an attempted acceleration by a lender or
other obligee under a prior encumbrance, and whether or  not the
credit or security documents specify the responsibilities and rights
of the parties in the event of a loan prepayment respecting a prior
encumbrance which may result in a requirement for refinancing, a
prepayment penalty, or a prepayment discount and, if such
specification occurs, a recital of the provisions which apply.
   (g) If the financing being arranged or any of the financing
represented by a prior encumbrance could result in a balloon payment,
or in a right in the lender  or other obligee under such financing
to require a prepayment of the principal balance at or after a
stipulated date, or upon the occurrence of a stipulated event, a
disclosure of the date and amount of any balloon payment or the
amount which would be due upon the exercise of such right by the
lender or obligee, and a statement that there is no assurance that
new financing or loan extension will be available at the time of such
occurrence.
   (h) If the financing being arranged involves an all inclusive
trust deed or real property sales contract, a disclosure of the party
to whom payments will be made and who will be responsible for
remitting these funds to payees under prior  encumbrances and vendors
under this transaction and a warning that, if that person is not a
neutral third party, the parties may wish to agree to have a neutral
third party designated for these purposes.
   (i) A disclosure on the identity, occupation, employment, income,
and credit data about the prospective purchaser, as represented to
the arranger by the prospective purchaser; or, specifically, that no
representation as to the credit-worthiness of the specific
prospective purchaser is made by the arranger.  A warning should also
be expressed that Section 580b of the Code of Civil  Procedure may
limit any recovery by the vendor to the net proceeds of the sale of
the security property in the event of foreclosure.
   (j) A statement that loss payee clauses  have been added to
property insurance protecting the vendor, or that instructions have
been or will be directed to the escrowholder, if any, in the
transaction or the appropriate insurance carriers for addition of
such loss payee clauses, or a statement that, if such provisions have
not been made, that the vendor should consider protecting himself or
herself by securing such clauses.
   (k) A statement that a request for notice of default under Section
2924b has been recorded, or that, if it has not been recorded, the
vendor should consider recording a request for notice of default.
   (l) That a policy of title insurance has been obtained or will be
obtained and be furnished to the vendor and purchaser, insuring the
respective interests of the vendor and purchaser, or that the vendor
and purchaser individually should consider obtaining a policy of
title insurance.
   (m) That a tax service has been arranged to report to the vendor
whether property taxes have been paid on the property, and who will
be responsible for the continued retention and compensation of tax
service; or that the vendor should otherwise assure for himself or
herself that the taxes on the property have been paid.
   (n) A disclosure whether the security documents on the financing
being arranged have been or will be recorded pursuant to Section
27280 of the Government Code, or a statement that the security of the
vendor may be subject to intervening liens or judgments which may
occur after the note is executed and before any resort to security
occurs if the security documents are not recorded.
   (o) If the purchaser is to receive any cash from the proceeds of
the transaction, a statement of that fact, the amount, the source of
the funds, and the purpose of the disbursement as represented by the
purchaser.
   (p) A statement that a request for notice of delinquency under
Section 2924e has been made, or that, if it has not been made, the
vendor should consider making a request for a notice of delinquency.

Last modified: January 12, 2009