What Are California Real Estate Disclosure Requirements?

California has some of the most comprehensive real estate disclosure requirements in the U.S. Sellers of residential properties with one to four units are legally required to disclose all known material defects or issues that could affect a property’s value or safety. This is typically done using the Transfer Disclosure Statement (TDS), which ensures transparency between the seller and buyer.

What Is a Seller’s Disclosure?

A seller’s disclosure is a standard form where sellers provide information about the property's condition, including material defects, features, and systems. These disclosures help protect both buyers and sellers by ensuring all relevant property details are shared before the sale. Material defects might include structural issues, hazardous materials, or non-functional systems.

Is a Seller’s Disclosure Required in California?

Yes, California Civil Code §1102 mandates sellers to complete and provide the TDS for residential real estate transactions involving one to four units. This form ensures buyers receive accurate property details before title transfer.

What Do Sellers Need to Disclose in California?

Sellers must disclose a wide range of property details, including:

• Home Systems: Functionality of appliances, HVAC, plumbing, electrical, and more.
• Structural Integrity: Issues with walls, ceilings, floors, windows, doors, roofs, and foundations.
• Hazardous Materials: Asbestos, lead-based paint, radon gas, mold, or contaminated soil.
• Flood Risks or Water Damage: Grading, drainage, flooding, or soil problems.
• Legal and Zoning Issues: Easements, CC&Rs, unpermitted modifications, or disputes.
• Deaths on the Property: Sellers must disclose any death that occurred within the last three years.
• Natural Hazards: Whether the property lies in zones prone to earthquakes, flooding, wildfires, or other risks.

Does an "As Is" Sale Require Disclosures?

Yes, even in an "as is" sale, sellers must complete all required disclosures, including the TDS. Selling a property "as is" does not waive your legal obligation to inform buyers of known defects. Refer to the California Association of Realtors (CAR) Sales Disclosure Chart for more information.

When Must Disclosures Be Provided?

Disclosures must be provided before the title transfer. Buyers generally have 3–5 days to review disclosures and can terminate the agreement during this period if they’re unsatisfied with the information provided.

Additional Disclosure Requirements in California

In addition to the TDS, sellers must also complete other disclosures, including:

• Natural Hazard Disclosure Statement: Indicates if the home is in areas prone to natural disasters.
• Mello-Roos and Supplemental Property Tax: Details about special property taxes or bonds.
• Ordnance Locations: Disclosure if the property is near military training areas.
• Megan’s Law Notification: Informing buyers of the database for registered sex offenders in the area.
• Excessive Mold: Disclosing mold issues that make the home substandard.
• Water Heater and Smoke Detector Compliance: Certifying that water heaters are secured and smoke detectors are functional.

Disclosure Exceptions

There are some exemptions to disclosure requirements, such as:

• Transfers by court order or foreclosure
• Sales resulting from a will or trust
• Transfers between co-owners or close family members
• Tax-defaulted property sales
• Sales to government entities

What Happens If You Forget to Disclose Something?

If you accidentally leave out information, buyers would need to prove you intentionally omitted it. To ensure accuracy, the TDS provides a detailed questionnaire to jog your memory. If you remember something after submitting the disclosure, you can provide an amended or additional disclosure before closing.

By completing and providing all required disclosures, sellers demonstrate honesty and transparency, helping to build buyer confidence and avoid potential legal issues after the sale.

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