Section 1542 California
Negotiating a PSA in California right now— can anyone briefly explain why a buyer would waive its rights to this?
Trending Content - Real Estate Forum
Career Resources
WSO Free Modeling Series - Now Open Through
October 31, 2026
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
High Finance Applications
Guaranteed
Get at least one offer GUARANTEED
- 1:1 support
- 92% success rate
- 2,000+ mentor network
- Unlimited Live bootcamps
- AI for resume + LinkedIn
- Networking automation tools
- HireVue simulation tool
- Full course library
- Private Slack community
- 20hrs of mocks
- + much more...
Because a seller won’t sell you the asset without it.
Ok. I’m not sure I understand the context. What’s the meant to address?
In California a general liability release does not extend to conditions unknown by the the seller that would have benefitted the buyer had they known them before hand, even if the seller didn’t know about them either. For example if you bought the property and then found an Indian burial ground that the seller didn’t know about either, they could still be held liable.
basically it’s a catch all law that is meant to prevent the little guy from getting swindled into giving away their rights to future litigation by signing a general release of liability, but had the unintended effect of making it so that on every transaction you have to get section 1542 waived or the seller will remain liable for unknown unknowns.
I’m not an expert on this, but that’s my understanding
Ea voluptates sed ut blanditiis. Qui nisi sint quo incidunt ad. Praesentium eos dignissimos fuga sapiente omnis odit. Eos quae iure saepe beatae commodi nobis aut. Nostrum nam aliquam veritatis sint aliquid. Qui consequatur animi impedit.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...