Before I get started, I am not an attorney and this information is strictly an opinion!
That being said, if you were to speak to a group of real estate attorneys, brokers and agents, you will receive conflicting and confusing information.
Here is the problem with SB800 and your particular circumstance:
Although SB800 was intended for builders in the trade of building homes to sell (c.c. 911), you are liable because of the building standards required in this bill (c.c. 869).
This bill was written to protect the consumer and to limit the liability of the builder.
If problems occur with the construction or something as small as cabinet doors, the buyer can claim you are liable and the decision could be up to a judge to determine the outcome.
Keep in mind, with the New Construction Addendum buyers and sellers have a choice of Adversarial or Non-Adversarial.
Well, kind-of-sort-of, but we will save that for a later discussion.
With this Bill in place and your situation, you have a few choices to make-
The buyer may use the standard Residential Purchase Agreement Contract (CAR form) and add the New Construction Addendum (CAR form).
If you accept their agreement, you are acknowledging you are in agreement to abide by SB800.
If the buyer simply uses the Res. Purchase Agreement without the New Construction Addendum and a problem occurs later, you could argue that your intent was to live in the home, decided to sell it simply as a homeowner and that SB800 did not apply to you.
Either way, You are in a defensive position because of SB800.
Bottom line- The law is the law! You can express your intent, but you are liable because of SB800.
What I Would do-
Provide the buyer with a Builder's Warranty. There are a few good companies out there. This is not a Home Warranty.
If you are insolvent, you will need to provide a Surety Bond as well.
SB800 is complicated.
You definitely want a Realtor who is experienced in New Construction representing you.
Because you are a subcontractor or contractor of the home, you will be liable for issues that arise with the home.
The Builder's Warranty and, if necessary, the surety bond will help!
Real Estate Brokers and Agents are not allowed to give legal advice and if you have legal questions, you should consult an experienced real estate attorney in your area!
Call me and I can go into greater detail from a real estate brokerâ€™s perspective!
My direct number is 949.378.4005.
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â€œ25 Years of Professional Real Estate Experienceâ€
Prudential CA Realty
Prudential Commercial Investment Division
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CEO-Laguna Castles, Inc.