California Seller Disclosures

The cornerstone of California seller disclosures. The TDS is a standardized form (Civil Code Section 1102.6) that requires you to disclose any known material defects or conditions affecting the property. It covers the condition of the roof, foundation, plumbing, electrical systems, heating/cooling, appliances, bathrooms, kitchen, windows, doors, floors, walls, ceilings, pools, spas, and more. You must answer honestly and completely — "do not know" is acceptable when truthful, but omitting a known issue is not.

California law requires sellers to disclose whether the property lies within any designated natural hazard zones. The current California Natural Hazard Disclosure (NHD) statement specifically covers FEMA special flood areas, dam-failure inundation zones, high and very high fire hazard severity zones, wildland fire areas, earthquake fault zones, and seismic hazard zones. A professional NHD report maps the property against these statutory categories and is prepared by a third-party disclosure company, typically paid for by the seller. A third-party supplemental report may contain additional information, but it should not be presented as a statutory category. The cost of the report varies by provider and the service selected.

For any residential property built before 1978, federal law requires sellers to disclose all known lead-based paint hazards and provide buyers with the EPA-approved "Protect Your Family from Lead in Your Home" pamphlet. As a general rule you also give buyers a 10-day opportunity to conduct a lead-based paint inspection or risk assessment at their expense. Federal rules normally allow the parties to mutually agree in writing to a different period, and the buyer may waive the inspection opportunity. This is a federal requirement, not just a California rule, and the penalties for non-compliance can be significant.

If your property is in a homeowners association (like Spencer's Crossing, Greer Ranch, The Colony, or Four Seasons), you must provide the buyer with a comprehensive HOA document package. Under California Civil Code Sections 4525 and 4530 this typically includes the CC&Rs (Covenants, Conditions & Restrictions), bylaws, financial statements (including the reserve study), and a statement of pending assessments or special levies. Meeting minutes are provided if the buyer requests them. Current DRE guidance, updated August 21, 2026, also identifies the most recent exterior elevated-element or balcony inspection report, when applicable, among the documents to be furnished. The HOA will also prepare a demand letter showing any outstanding fees or violations. Most HOAs charge a fee for compiling these documents.

California law requires you to disclose any known material defects — even if they have been repaired. Common examples include roof leaks (past or present), foundation cracks or settling, plumbing leaks or sewer line issues, electrical problems (faulty wiring, outdated panels), HVAC malfunctions, mold or water damage, pest infestations (termites, dry rot), soil or drainage problems, and window seal failures. When in doubt, the safer approach is generally to disclose rather than to hold information back. If you are not sure whether something must be disclosed, ask your agent or an attorney.

Mello-Roos Community Facilities Districts (CFDs) are special tax districts that fund infrastructure and services in newer communities. If your property is in a Mello-Roos district, you must disclose the annual assessment amount and any remaining bonded indebtedness. This information is typically included in the NHD report or can be obtained from the county tax assessor. Buyers need to understand these ongoing costs as they directly affect affordability.

California law does not require you to guarantee the accuracy of square footage or property lines, but you must disclose what you know. If your recorded square footage differs from the county assessor's records or if you have made unpermitted additions or modifications, you should disclose that. Property line disputes, encroachments, or easements should also be disclosed. Many buyers will order a survey, and an undisclosed discrepancy can kill a deal or lead to post-sale litigation.

California law requires sellers to provide buyers with a notice that information about registered sex offenders is available from the local law enforcement agency or the Megan's Law database (www.meganslaw.ca.gov). This is typically included as a standard disclosure form in the seller's disclosure package. The seller is not required to research or provide specific information — only to inform the buyer that the database exists and how to access it.

Failing to disclose known material defects can have serious potential legal consequences in California, depending on the facts and the law. Under Civil Code Section 1102, a seller who knowingly conceals a material fact may be liable for damages, including the cost of repairs, diminution in value, and in some cases punitive damages. In some circumstances, buyers may also be able to rescind (cancel) the sale if they discover a material defect that was not disclosed. Beyond the financial risk, non-disclosure may damage your reputation as a seller and can complicate future transactions. Because every situation is different, a seller facing a disclosure dispute should consult an attorney. Careful, honest disclosure is the best way to protect everyone involved.

California Civil Code Sections 1102 through 1102.19 govern the transfer disclosure requirements for residential real estate sales. Key requirements include: the seller must provide a completed TDS to the buyer as soon as practicable before transfer of title; the disclosure applies to most residential properties with 1-4 units; certain transfers are exempt (new construction, court-ordered sales, foreclosures, and some others); and the seller must also provide disclosures for any additional known conditions. Under Civil Code Section 1102.3, when a required disclosure or a material amendment is delivered after the offer is signed, the buyer has three days after personal delivery, or five days after mail or agreed electronic delivery, to cancel the contract. Requirements vary by transaction, so Laura and Cheryl help sellers organize the process and encourage them to ask questions about what applies to their situation.

California highlights a law that can affect certain sellers who acquired a single-family property within the previous 18 months and performed contractor work. For qualifying transactions, California requires additional disclosures regarding room additions, structural modifications, alterations, or repairs, including certain contractor and permit information. This has applied since July 1, 2024 and only applies to qualifying transactions, so review the requirements with your agent and, when appropriate, legal counsel before listing.

For applicable properties located in a high or very high fire hazard severity zone, California law can require additional disclosures, including certain information for homes constructed before January 1, 2010. This is particularly relevant for Murrieta-area sellers because parts of the region sit in or near these designated zones. Confirm whether your property is in such a zone and what additional disclosure applies to your home with your agent and, when appropriate, legal counsel.

Under California law, a death occurring more than three years before the buyer's offer generally does not have to be disclosed, while a seller or agent cannot intentionally misrepresent the facts when directly asked. The law also has specific protections concerning HIV and AIDS-related information, which are treated separately from other stigmatizing events. Real estate agents may have their own additional policies about disclosing stigmatized properties, so ask your agent about their approach.