When it comes to selling a home in California, transparency isn’t just recommended, it’s required by law. Sellers have a legal obligation to disclose certain details about the property that could affect a buyer’s decision. These disclosures are designed to promote fairness, prevent future disputes, and ensure that buyers know exactly what they’re purchasing.
Understanding what you have to disclose when selling a house can feel overwhelming at first, especially with California’s detailed regulations. But with the right guidance and a clear understanding of what’s expected, the process becomes much more manageable. In this post, we’ll walk through the key disclosures required by California law and explain how sellers can meet their obligations with confidence.
California’s Real Estate Disclosure Requirements
California has some of the most detailed disclosure laws in the country, requiring home sellers to provide potential buyers with a clear and honest overview of the property’s condition and history. These requirements exist to protect buyers from unexpected issues and to reduce the risk of legal disputes after closing.
At the core of these requirements are two key documents: the Transfer Disclosure Statement (TDS) and the Seller Property Questionnaire (SPQ).
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The TDS is a mandatory form that outlines any known material defects or issues with the property, including problems with major systems like the roof, plumbing, and electrical.
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The SPQ goes a step further by asking sellers to disclose additional details such as past repairs, neighborhood disturbances, or any issues not covered in the TDS.
Both documents must be completed honestly and in full. Even if an issue has been resolved, if it could impact the buyer’s decision, it needs to be disclosed. A failure to disclose known problems can lead to serious legal consequences down the road.
Common Disclosures Required by California Law
When selling a home in California, you’re legally required to disclose any material facts that could affect the value, desirability, or safety of the property. These disclosures give buyers the information they need to make an informed decision and help protect you from liability after the sale. Here are some of the most common disclosures sellers must make:
Structural or Mechanical Issues
If you’re aware of problems with the foundation, roof, plumbing, electrical, or HVAC systems, you must disclose them, even if they’ve been repaired.
Water Damage, Mold, or Leaks
Past or present water intrusion, mold growth, roof leaks, or plumbing issues should be documented, along with any remediation efforts.
Pest Infestations or Termite Damage
If the home has a history of termite activity, rodent issues, or pest treatment, it needs to be disclosed, regardless of when it occurred.
Environmental Hazards
Sellers must report any known exposure to hazards like lead-based paint (for homes built before 1978), asbestos, radon, or the presence of a flood or fire zone.
Neighborhood Nuisances
Regular noise, odors, or disturbances, like nearby businesses, traffic, or barking dogs, should be disclosed if they may impact the buyer’s enjoyment of the home.
Deaths on the Property
In California, if a death occurred on the property within the last three years, sellers are required to disclose it, even if it was from natural causes.
Legal Issues or Liens
Disclose any ongoing disputes, lawsuits, zoning violations, or liens against the property that may affect ownership or use.
Unpermitted Work
If improvements or additions were made without the proper permits, even if they were done professionally, you’re obligated to inform the buyer.
Being upfront about these details is not only a legal requirement; it helps establish trust and reduces the risk of complications later in the transaction.
Natural Hazard Disclosure (NHD) Report
In addition to standard property disclosures, California law requires sellers to provide buyers with a Natural Hazard Disclosure (NHD) Report. This report informs buyers whether the property is located in a zone that is at greater risk for natural disasters such as fires, floods, or earthquakes.
The NHD Report typically includes information about whether the home is situated in:
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A special flood hazard area
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A very high fire hazard severity zone
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An earthquake fault zone or seismic hazard area
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A wildland area that may contain substantial fire risks
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A state or local hazard mapping zone
This report is usually prepared by a third-party disclosure company and provided to the buyer during escrow. While the NHD itself doesn’t necessarily impact the sale, it’s essential for transparency so that buyers may use the information to assess future insurance costs or potential risks.
Failing to provide the NHD Report when required can delay the transaction and even lead to legal complications, so it’s important to ensure it’s included as part of your full disclosure package.
Disclosing Known Repairs and Renovations
So, what do you have to disclose when selling a house in regards to repairs? Well, if you’ve made repairs, upgrades, or renovations to your home, whether recent or years ago, it’s important to disclose them to potential buyers. California law requires sellers to be transparent about any known changes to the property that could impact its value or safety.
Buyers want to know what kind of work has been done, who completed it, and whether it was done with the proper permits. Especially, if the property was a fixer upper or has had extensive remodeling done. Disclosing this information helps build trust and reduces the likelihood of surprises during inspections or after closing. Common items to disclose include:
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Roof replacements or repairs
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Kitchen or bathroom remodels
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Room additions or conversions (especially if unpermitted)
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Electrical, plumbing, or HVAC updates
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Foundation or structural repairs
Even if a repair fixed a prior issue, it still needs to be documented. For example, if your home once had a leak that was repaired professionally, the prior leak should still be disclosed, along with the details of the repair.
Being upfront about your home’s maintenance history shows buyers that the property has been well cared for, and it helps avoid potential legal disputes down the line.
What Sellers Are Not Required to Disclose
While California has some of the most detailed disclosure laws in the country, there are certain things that sellers are not legally required to disclose when listing a home for sale. Understanding these boundaries can help you navigate the process confidently while staying in compliance.
Here’s what you typically don’t have to disclose:
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Previous occupant details that do not affect the condition or value of the property (except in the case of death within the last three years).
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Crime rates or neighborhood gossip, such as rumors about nearby properties, neighbors, or area development unless they impact the home directly.
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Deaths on the property that are older than three years (though disclosing them voluntarily can be helpful in some cases).
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Protected statuses under federal and state fair housing laws, such as a resident’s age, race, religion, disability, or family status.
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Natural disasters that did not directly affect the property, unless your home lies within a designated hazard zone (covered by the NHD report).
It’s always better to err on the side of transparency, but knowing where the legal lines are drawn can prevent unnecessary confusion. When in doubt, your real estate agent can help you determine what’s appropriate, and what’s not, when filling out disclosure forms.
The Risks of Failing to Disclose Properly
Failing to disclose known issues when selling a home in California can lead to serious consequences, both legal and financial. Disclosure laws exist to protect buyers from unexpected problems, and sellers who withhold information, even unintentionally, may be held liable after the sale.
If a buyer discovers an undisclosed defect or hazard after closing, they may have grounds to file a lawsuit for damages, rescind the sale, or demand costly repairs. In some cases, sellers have been forced to pay thousands in legal fees or settlements for non-disclosure.
Beyond financial risk, failing to disclose damages your credibility and can derail a transaction entirely. A buyer who loses trust may walk away, costing you valuable time and money.
The good news? These issues are preventable. With the right real estate professional guiding you through the disclosure process, you can protect yourself, stay compliant, and move forward with confidence. Transparency not only fulfills your legal obligation—it’s also the smartest way to ensure a smooth, successful sale.
How a Real Estate Agent Helps You Stay Compliant
Navigating California’s disclosure requirements can be complex, but a knowledgeable real estate agent makes the process far more manageable. From day one, your agent serves as a trusted advisor, helping you understand exactly what needs to be disclosed and how to do it correctly.
An experienced agent will:
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Provide and explain all required disclosure forms (like the TDS, SPQ, and NHD)
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Help you identify which property details are legally necessary to report
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Coordinate with third-party providers for reports such as the NHD
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Review documentation for completeness and accuracy before it’s delivered to the buyer
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Guide you through common gray areas, such as past repairs or unpermitted work
Beyond ensuring legal compliance, your agent works to present your disclosures in a way that’s clear, professional, and buyer-friendly, reducing the likelihood of disputes or misunderstandings. With a skilled professional on your side, you can move through the disclosure process with confidence, knowing everything has been handled properly.
Honesty Is the Best Policy When Selling a Home
When it comes to selling a home in California, disclosures aren’t just a formality—they’re a legal and ethical necessity. Being transparent about your property’s condition not only protects you from future liability but also builds trust with potential buyers, leading to a smoother transaction. From structural issues to environmental hazards and past repairs, understanding what you’re required to disclose can help you avoid costly setbacks and keep the sale on track.
If you're preparing to sell and want to make sure every detail is handled correctly, Joseph Sabeh is here to guide you every step of the way. With expert knowledge of California disclosure laws and a proven approach to marketing and negotiation, Joseph ensures your home sale is compliant, competitive, and stress-free. Contact Joseph Sabeh today for a personalized consultation and sell with confidence.
