WHAT IS A 9A REPORT?

by Herb Rim

WHAT IS A 9A REPORT?

When selling a home in the city of Los Angeles, there are three things that impact a transaction.

CITIES THAT REQUIRE PRE-SALE INSPECTION REPORTS

Azusa • Beverly Hills • Carson • Compton • Cudahy • Culver City • El Segundo • Gardena • Hawaiian Garden • Hermosa Beach • Huntington Park (As of 7/01/02 one to four units only) • Inglewood • Laguna Beach • Los Angeles City of LA only (RPR-form 9) • Manhattan Beach • Maywood • Monterey Park • Newport Beach • Orange • Oxnard • Palo Verde Estates • Pasadena • Port Hueneme • Rancho Palos Verdes • Redondo Beach • Rolling Hills • San Diego • San Marino • Santa Monica • South Gate • Signal Hill • Torrance • Thousand Oaks

Any residential property in the Incorporated City of Los Angeles falls under this category. It is important to keep in mind that most of the areas of the San Fernando Valley (for instance, Northridge, Encino, Studio City, Sylmar, Chatsworth, etc.) are in the City of Los Angeles.

1) Increased transfer tax:

All real estate transfers, both residential and non-residential, are subject to an increased transfer tax in the City of Los Angeles. The County of Los Angeles imposes a transfer tax on the seller, charging $1.10 per thousand dollars of the sale price. However, when a property is located within the City of Los Angeles, an additional $4.50 per thousand is levied on top of the county tax.

To illustrate, for a property sold at $400,000 outside the City of Los Angeles, the transfer tax paid at recording would amount to $440. In contrast, if the same property were located within the City of Los Angeles, the combined County and City transfer tax would be significantly higher at $2,240, due to the additional city tax.

2) Certificate of Compliance for Water Conservation Retrofit, Department of Water and
Power:

During the escrow process, a Certificate of Compliance must be completed and signed by three parties: 1) a Licensed Retrofit Inspector, a Licensed Plumbing Contractor; 2) the buyer; and 3) the seller. This certificate confirms that the property adheres to the City of Los Angeles ordinances concerning low-flow toilets and showerheads, which are part of the city's water conservation measures. We can help direct you to providers to do #1 above. 

Upon closing, the completed Certificate of Compliance is submitted to the Department of Water and Power (DWP), accompanied by a $15 fee. Although the seller typically covers this fee, any party involved in the transaction may pay it.

3) Residential Property Report (formerly known as a 9A report):

The City of Los Angeles, Department of Building and Safety, mandates and issues the 9A Report, which serves multiple purposes. Primarily, it aims to notify buyers of any existing or upcoming special assessments on the property, such as the City of Los Angeles' plans for new sewers or sidewalks. Throughout the years, Building and Safety has incorporated additional items into this report to ensure that properties comply with various minimum code requirements at the time of ownership transfer.

The seller typically completes an application, declaring that the property either complies or will be brought into compliance with the City's specific requirements. This application is then submitted to Building and Safety along with a fee of $70.20. Subsequently, the City provides the 9A Report, which includes copies of permits issued on the property and a report of pending assessments.

It is worth noting that while it is highly unusual for a report to reveal special assessments, it is not entirely unheard of.

Here are the items covered by the Residential Property Report (9A):

1. Smoke Detectors
2. Water Conservation Retrofit (which is a duplication of the DWP requirements above)
3. Impact Hazard Glazing on sliding glass and shower doors.
4. Seismic Gas Shut Off Valves
5. Oak Tree Compliance (for properties over 1 acre)
6. Specific Requirements where bars are on the windows of sleeping rooms
7. Apartments of three or more units must have security lighting and locks

All of the items above have traditionally been items that the seller would obtain and pay for. That has changed a little in our recent market conditions of REO’s and short sales, and a buyer can also take care of or pay for these items. Often, the best way to deal with numbers 2 and 3 above, is to have a licensed retrofit company inspect the property. They will issue and sign the Certificate of Compliance (item 2 above); and they will let the seller know if the property is in compliance with the Department of Building and Safety Requirements. This will enable the seller to accurately complete the Application for the Residential Property Report (item 3 above). The same retrofit company will generally also give an estimate of any work that needs to be done to bring the property into compliance.

 Trust sales are not exempt from providing a City of Los Angeles 9A report. However, the TDS - transfer disclosure statement may be exempt in some cases. 

 

Top 3 Retailers for Buying California Compliant Smoke Detectors in 2024

1. Amazon - When it comes to price and convenience, Amazon is unbeatable. While all carbon monoxide detectors sold on the platform are California compliant, it's important to note that not all smoke detectors meet the state's standards. To ensure compliance, look for smoke or combination detectors powered solely by non-replaceable, 10-year batteries. For more information on California's smoke detector requirements, click here.

2. Home Depot - You can rest assured that any smoke, carbon monoxide, or combination detector purchased at a California Home Depot location will be compliant with state regulations. Home Depot's California stores exclusively carry detectors that meet the state's stringent standards.

3. Lowe's - Like Home Depot, all California Lowe's stores stock only smoke, carbon monoxide, and combination detectors that comply with the state's requirements. You can shop with confidence, knowing that any detector you purchase will meet California's safety standards.

If you're in the market for a combination smoke and carbon monoxide detector, the same compliance rules apply to the retailers mentioned above.

 

GET MORE INFORMATION

Herb Rim

Herb Rim

Realtor | License ID: 01870707

+1(818) 699-9179

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