California Codes, Civil Code - CIV, Division 3 — Obligations, Part 2 — Contracts, Title 5 — Extinction of Contracts, Chapter 2.5 — Home Equity Sales Contracts, Section 1695.16
(a) Any provision of a contract which attempts or purports to limit the liability of the equity purchaser under Section 1695.15 shall be void and shall at the option of the equity seller render the equity purchase contract void. The equity purchaser shall be liable to the equity seller for all damages proximately caused by that provision. Any provision in a contract which attempts or purports to require arbitration of any dispute arising under this chapter shall be void at the option of the equity seller only upon grounds as exist for the revocation of any contract.
(b) This section shall apply to any contract entered into on or after January 1, 1991.
Notes
Bars contract terms that limit an equity purchaser’s statutory representative-liability, making such terms void and allowing the equity seller to void the purchase contract and recover resulting damages. Arbitration requirements are voidable only on ordinary contract-revocation grounds, and the rule applies to contracts entered on or after January 1, 1991.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 1695.16 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-2/title-5/chapter-2-5/section-1695-16