(a) Prior to any transfer of title of any residential building subject to the provisions of this chapter as a result of sale or exchange, the seller, or the seller's authorized representative, shall obtain a valid energy inspection and shall install all applicable energy conservation measures required by Section 1212 as enumerated in the energy inspection form. The seller, or the seller's authorized representative, must furnish a copy of the completed inspection form showing compliance with this chapter to the buyer prior to transfer of title.
(b) Title Transfer Exemption. A transfer of a residential building by operation of law rather than by purchase is exempt from the provision of this chapter. This exemption includes, but is not limited to:
(1) Transfers pursuant to court order, including, but not limited to, transfers ordered by a probate court in administration of an estate, transfers pursuant to a writ of execution, transfers by a trustee in bankruptcy, transfers by eminent domain, or transfers resulting from a decree for specific performance;
(2) Transfers to a mortgagee by a mortgagor in default, transfers to a beneficiary of a deed of trust by a trustor in default, transfers by any foreclosure sale after default in an obligation secured by a mortgage, or transfer by a sale under a power of sale after a default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale;
(3) Transfers by a fiduciary in the course of the administration of a guardianship, conservatorship, or trust;
(4) Transfers from one co-owner to one or more co-owners;
(5) Transfers made to a spouse, or a domestic partner registered with the State of
California, or to a person or persons in the lineal line of consanguinity of one or more of the transferors;
(6) Transfers between spouses or domestic partners resulting from a decree of dissolution of a marriage or a domestic partnership or a decree of legal separation or from a property settlement agreement incidental to such decrees;
(7) Transfers by the State Controller in the course of administering the Unclaimed Property Law, Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure;
(8) Transfers under the provisions of Chapter 7 (commencing with Section 3691) and Chapter 8 (commencing with Section 3771) of Part 6 of Division 1 of the Revenue and Taxation Code;
(9) Transfers resulting by operation of law;
(10) Transfers by which title to real property is reconveyed pursuant to a deed of trust;
(11) Transfers for which a transfer agreement was entered into prior to the effective date of this ordinance.
(c) Energy and Water Conservation Escrow Account. The seller, or the seller's authorized representative, may transfer responsibility for compliance with the minimum energy conservation measures of Section 1212 and the minimum water conservation measures of Section 12A10 to the buyer of the building if at the time of transfer of title:
(1) A valid energy inspection, within the meaning of Section 1205, and a valid water conservation inspection within the meaning of Section 12A09 have been made and the inspection form or forms filed with the Department of Building Inspection along with notification indicating that an escrow account has been set up pursuant to this Section and giving the escrow holder's name and address and the escrow number;
(2) A written agreement signed by the buyer and seller is deposited into the escrow containing the following;
(i) The buyer's agreement that the required energy and water conservation measures will be installed within 180 days of transfer of title,
(ii) The seller's agreement that funds equal to one percent of the purchase price indicated on the accepted purchase offer shall be retained by the escrow holder and disbursed as follow:
(a) Upon delivery to the escrow holder of a copy of the completed certificate of compliance as filed with the Department of Building Inspection within 180 days after the close of escrow, the escrow holder shall, upon written instructions of the buyer, disburse so much of these funds as are required to pay the provider(s) of the materials and labor used to bring the property into compliance with the provisions of this chapter and Chapter 12A and shall disburse any surplus thereafter remaining to the seller;
(b) If such certificate of compliance is not delivered to the escrow holder within 180 days after the close of escrow, all said funds shall be deposited into the Residential Energy Conservation Account of the Repair and Demolition Fund of the City and County of San Francisco established pursuant to Section 102.13 of the San Francisco Building Code (Part II, Chapter I of the San Francisco Municipal Code) to be used exclusively to bring the building into compliance with the provisions of this chapter and Chapter 12A, with any surplus funds to be returned to the seller once compliance is achieved. No funds shall be deposited in the Residential Energy Conservation Account under this Subsection as long as, in the case of the subject building: (A) an appeal is pending or an extension has been granted pursuant to Section 1213 of this chapter; (B) an appeal is pending pursuant to Section 12A11 of this Code; or (C) a complaint is pending in court on behalf of the buyer or seller, or an arbitration proceeding is underway between the buyer and seller, with respect to the disposition of the escrow fund for the purpose of completing energy or water conservation measures pursuant to this Code.
(d) Notice of the Requirements of This Ordinance. The seller, or the seller's authorized representative involved in the sale or exchange of residential building subject to the provisions of this chapter and Chapter 12A, shall give written notice of the requirements of this ordinance to the buyers. Prior to the effective date of this ordinance an informational brochure specifying the energy and water conservation requirements shall be made available by the Department of Building Inspection. Delivery of this brochure to the buyer shall satisfy the notice requirements of this Section. Failure to give notice as required by this Section shall not excuse or exempt the seller or buyer of a residential building from compliance with the requirements of this chapter and Chapter 12A.
(Added by Ord. 399-89, App. 11/6/89; amended by Ord. 161-92, App. 6/4/92; Ord. 350-95, App. 11/3/95; Ord. 256-07, App. 11/6/2007; Ord. 76-09, App. 5/14/2009, Eff. 7/1/2009)