California Civil Code

§ 1812.205

CIV § 1812.205Div. 3 · Title 2.7 · Part 4

Statute text

At the first in-person communication with a potential purchaser or in the first written response to an inquiry by a potential purchaser, whichever occurs first, wherein the seller assisted marketing plan is described, the seller or his or her representative shall provide the prospective purchaser a written document, the cover sheet of which is entitled in at least 16-point boldface capital letters “DISCLOSURE REQUIRED BY CALIFORNIA LAW.” Under the title shall appear in boldface of at least 10-point type, the statement: “The State of California has not reviewed and does not approve, recommend, endorse or sponsor any seller assisted marketing plan. The information contained in this disclosure has not been checked by the state. If you have any questions about this purchase, see an attorney or other financial adviser before you sign a contract or agreement.” Nothing shall appear on the cover sheet except the title and the statement required above. The disclosure document shall contain the following information:

(a)The name of the seller, the name under which the seller is doing or intends to do business and the name of any parent or affiliated company that will engage in business transactions with purchasers or accept responsibility for statements made by the seller.

(b)A statement of the initial payment to be paid by the purchaser to the seller, or when not known, a statement of the approximate initial payment charged, the amount of the initial payment to be paid to a person inducing, directly or indirectly, a purchaser to contract for the seller assisted marketing plan.

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Legislative history

Amended by Stats. 1981, Ch. 258, Sec. 3.