California has extensive disclosure requirements. Here's what you need to know.
Required Disclosures
Transfer Disclosure Statement (TDS)
Your detailed knowledge of the property's condition: systems, repairs, problems.
Seller Property Questionnaire (SPQ)
Additional questions about history, neighbors, legal issues.
Natural Hazard Disclosure (NHD)
Third-party report on flood zones, fire zones, earthquake faults, etc.
Lead-Based Paint Disclosure
Required for homes built before 1978.
What to Disclose
Rule of thumb: If you know about it, disclose it.
This includes:
- Past repairs and why they were needed
- Insurance claims
- Deaths on the property (within 3 years)
- Neighborhood nuisances
- HOA issues
- Permit status of improvements
- Known defects, even if repaired
What Happens If You Don't Disclose
- Buyer can rescind the contract during escrow
- Buyer can sue after closing
- Your agent could face liability too
My Advice
Disclose everything. It protects you legally and builds trust with buyers. Most issues, properly disclosed, don't kill deals. Surprises do.
Note: This is general information, not legal advice. Consult an attorney for specific situations.