California Real Estate Disclosures: What Sellers and Buyers Need to Know

California Real Estate Disclosures: What Sellers and Buyers Need to Know

If you’re buying or selling a home in California, disclosures are not optional — they are a critical part of the transaction designed to protect both parties and prevent surprises after closing.

California has some of the most comprehensive disclosure laws in the country. Understanding them upfront can help you avoid delays, renegotiations, or legal issues later.

Here’s a practical breakdown of what disclosures are, why they matter, and what to expect during a residential real estate transaction.

What Are Real Estate Disclosures?

A disclosure is written information about a property that could affect a buyer’s decision to purchase or the price they’re willing to pay. These disclosures typically address:

• The physical condition of the home

• Known defects or repairs

• Environmental or natural hazards

• Legal or financial obligations tied to the property

California law places the primary responsibility for disclosures on the seller, with additional duties imposed on real estate agents to investigate and disclose material facts.

The Transfer Disclosure Statement (TDS)

One of the most important documents in a California home sale is the Real Estate Transfer Disclosure Statement (TDS).

This form requires the seller to disclose, to the best of their knowledge:

• The condition of major systems (roof, plumbing, electrical, HVAC)

• Past or present leaks, water damage, or structural issues

• Unpermitted additions or repairs

• Neighborhood nuisances (noise, odors, etc.)

• HOA involvement or shared features

• Environmental hazards such as asbestos, lead-based paint, or contaminated soil

Importantly, the TDS is not a warranty — but buyers are legally allowed to rely on the information provided when deciding whether to move forward.

If disclosures are delivered after an offer is accepted, buyers are given a short window to cancel the contract without penalty.

Natural Hazard Disclosures (NHD)

California sellers must also disclose whether a property is located in certain state- or federally-designated hazard zones, including:

• Flood zones

• Earthquake fault zones

• Seismic hazard zones (liquefaction or landslides)

• Very high fire hazard severity zones

• Wildland fire areas

These disclosures are typically made using a Natural Hazard Disclosure Statement, often completed by a third-party reporting company. Even when a third party is used, the seller and agent remain responsible for ensuring the disclosure is delivered to the buyer.

Hazard disclosures help buyers understand potential insurance costs, building restrictions, and long-term risks tied to the property.

Additional Seller Disclosures You Should Know About

Depending on the property and transaction, sellers may also be required to provide disclosures related to:

• Mello-Roos taxes or special assessments

• Supplemental property tax notices

• Methamphetamine contamination orders

• Window security bars and pool safety features

• Industrial zoning or nearby nuisance uses

• Water heater earthquake bracing

• Registered sex offender database notice

• Lead-based paint disclosures (for homes built before 1978)

Failing to properly disclose these items can expose a seller to claims of misrepresentation — even years after closing.

What Are Agents Required to Disclose?

Licensed real estate agents in California have independent disclosure obligations. Agents must:

• Conduct a reasonably competent visual inspection of accessible areas

• Disclose material facts affecting value, desirability, or intended use

• Disclose known defects even if the seller does not

• Properly explain agency relationships (buyer, seller, or dual agency)

Agents are not required to perform technical inspections, but they cannot ignore visible red flags or known issues.

Why Disclosures Matter (for Both Sides)

Disclosures protect everyone involved:

For sellers, proper disclosures:

• Reduce legal risk after closing

• Build buyer confidence

• Prevent deals from falling apart late in escrow

For buyers, disclosures:

• Provide transparency

• Help inform inspections and negotiations

• Prevent costly surprises after move-in

In short: honest, timely disclosures keep transactions smoother and safer.

Work With a Broker Who Takes Disclosures Seriously

Disclosure laws are detailed, technical, and constantly evolving. Having an experienced broker who understands both the legal requirements and the practical realities of escrow can make a major difference.

At San Diego 1 Percent Listing, disclosures aren’t treated as paperwork — they’re treated as a critical part of protecting our clients and closing clean, defensible transactions.

Thinking of Selling?

If you’re preparing to sell and want help navigating disclosures the right way — without over-disclosing, under-disclosing, or risking liability — let’s talk.

👉 Schedule a free seller consultation
👉 Get a professional disclosure strategy before you list

Legal Note

This article is for general informational purposes only and is not legal advice. Disclosure laws can change, and every property is different. Buyers and sellers should consult qualified real estate and legal professionals regarding their specific situation. Information summarized from the California Department of Real Estate disclosure guidelines