What Must Be Disclosed When Selling a House in California?

Is a seller’s disclosure required in California?

California Civil Code §1102 requires a seller’s disclosure. This requirement to disclose applies to real estate property of one to four dwelling units transferred by a sale.

The form is a standardized checklist called the Transfer Disclosure Statement, or TDS. The seller’s disclosure form is also found in the California Department of Real Estate’s handbook, helping sellers understand their disclosure requirements and responsibilities.

What does a California disclosure form mean for buyers?

The California disclosure form gives buyers the information they need to help them decide on purchasing a house.

“For buyers, it’s their opportunity to find out things about the property that they may not know just from a visual inspection,” explains Karen Anderson, a top real estate agent from Los Angeles who’s been helping sellers navigate disclosures for almost three decades.

A California disclosure form doesn’t necessarily ruin a sale. In contrast, it helps you sell your home because it shows the buyer and their agent that:

• You have complete information about the property.
• You are a serious seller.
• You are credible and honest.

What does a California disclosure form mean for sellers?

A California disclosure for sellers means you’ve spelled out any major issues with the property. The form ensures that you have been transparent to the buyers and other stakeholders involved and that they are aware of the material defects and features of the property.

Being honest about material defects can actually protect you later on. If problems come up after the sale, that completed form can help you avoid or at least have a solid defense against a lawsuit.

At the end of the day, it also sends a clear message to your buyer: you’re taking the sale seriously and not trying to hide anything.

What does a seller’s disclosure not do?

Before we review the details of California’s Transfer Disclosure Statement form, let’s establish what it does not do:

• It does not guarantee anything about a home’s condition. New problems can develop after purchase, or defects may come to light that the seller genuinely had no way of knowing.
• It does not require the seller to fix all the material defects disclosed.
• It doesn’t disclose every single fact about the property.

We’ll cover some limits to your duty to disclose, or exemptions, in detail later in the article.

When is the California disclosure form required to be submitted?

The seller must provide the disclosure statement before transferring the title, giving the buyer time to review the property’s condition. This timing helps protect the buyer through the termination clause, which allows them to back out of the deal without penalty if they find something in the disclosure they’re not comfortable with. Typically, the buyer has three to five days to terminate the deal after receiving the seller’s disclosure.

What do I have to disclose when selling a house in California?

The TDS requires you to disclose a litany of items. The document’s complexity is meant to protect both the seller and the buyer.

“It’s really designed to jog your memory about pretty much any situation that could come up, or could have occurred, so that you don’t forget,” Anderson says.

Home systems

Sellers in California are required to report on the presence and operation of home systems that can impact the safety of residents living on the property. The form specifically asks the seller to disclose the presence of the following:

Following this list of home systems, the seller will be asked to declare, to the best of their knowledge, if any of the above items are not in operating condition. If yes, you will need to describe what’s not working.

When you fill in the TDS, initial the page’s bottom and indicate whether the items are owned or leased. “The buyer needs to know their obligation once they assume ownership,” Anderson says.

Structural integrity

Sellers in California are required to report on the home’s structural integrity because it can impact the safety of residents living on the property. The form specifically asks the seller to disclose the presence of significant defects or malfunctions in the following:

• Interior Walls
• Ceilings
• Floors
• Exterior walls
• Insulation
• Roof(s)
• Windows
• Doors
• Foundation
• Slab(s)
• Driveways
• Sidewalks
• Walls/fences
• Electrical systems
• Plumbing/sewer/septic
• Other structural components

Hazardous materials or conditions

Sellers in California are required to report hazardous materials or conditions in the home because they can impact the safety of residents living on the property. The form specifically asks the seller to disclose the presence of hazardous materials or conditions, including:

• Asbestos
• Formaldehyde
• Radon gas
• Excessive mold
• Lead-based paint
• Fuel or chemical storage tank
• Industrial use
• Contaminated soil
• Water intrusion
• Thirdhand smoke
• Meth labs
• Significant damage to the property or structure from fire, earthquakes, floods, or landslides
• Low-cost measures done to address wildfire risk

Legal, zoning, annexations, or use compliance

California home sellers have to disclose any legal, zoning, annexation, or usage issues with the home since these can affect how the property can actually be used or enjoyed by the people living there. The form specifically asks the seller to disclose the presence of hazardous materials or conditions, including:

• Features shared in common with adjoining landowners, such as walls, fences, and driveways
• Encroachments, easements, or similar matters
• Room additions, structural modifications, other alterations, or repairs
• Non-building code-compliant room additions, structural modifications, other alterations, or repairs
• Zoning violations
• Neighborhood noise or nuisances
• Covenants, Conditions, and Restrictions (CC&Rs) or other deed restrictions or obligations
• Homeowners’ association, which has any authority over the subject property
• Any common areas (pool, tennis courts, walkways, co-owned areas)
• Notice of abatement or citations against the property
• Any lawsuits by or against the seller, threatening or affecting the property

Flood risks or water damage

If there’s any flood risk or past water damage, California sellers are expected to disclose it since it can change how safe and livable the property feels for future residents. The form specifically asks the seller to inform buyers of the presence of hazardous materials or conditions, including:

• Flooding, drainage, or grading problems
• Settling, slippage, and other soil problems

Deaths in the home

California law requires that you disclose the death of someone in the home within the last three years. You don’t have to disclose if the event occurred more than three years before the sale of the house. You also don’t have to inform buyers if a prior occupant had Acquired Immune Deficiency Syndrome.

“Most buyers find that comforting in a way that the person loved their home so that they wanted to pass away in it,” Anderson says. When it comes to death in the home, it might be better to disclose it when asked.

“I had a case a few years ago where two neighbors came to me during the open house and asked me if I knew about the murder in the home. I had to disclose that as a material fact,” he recounts.

He adds, “Two strangers told me at an open house. They’re going to tell a new buyer too.”

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Are there additional disclosure forms California sellers must complete?

California sellers must also disclose the following information:

• Natural Hazard Disclosure Statement shows whether the home is in zones predisposed to earthquakes, flooding, fire, or wildland risks.
• Mello-Roos Bond and Taxes are extra property taxes that apply in certain Community Facilities Districts. These taxes are used to repay bonds that help fund things like roads, schools, and other local infrastructure in the area. As a homeowner, you help pay back those bonds through this additional tax. If your property is in one of these districts, you’re required to disclose it when selling the home.
• Supplemental Property Tax is a notice that the buyer needs to get the property revalued by a tax assessor upon the transfer of title. They have to pay additional taxes on the title change.
• Ordnance Locations are areas used for military training, so there is a chance that live bombs and ammunition are present. Sellers must disclose if their property is within a mile of ordnance locations.
• Window Security Bars must be disclosed, along with any associated safety release mechanisms.
• Megan’s Law compels sellers to inform buyers about the database of registered sex offenders in the area so the public can better protect themselves and their families.
• Disclosure regarding real estate agency relationships documents agents’ relationships with other stakeholders.
• The health and safety code urges sellers to certify that the water heater is braced, anchored, or strapped and can resist falling or horizontal displacement when there’s an earthquake.

Realtor associations have created websites or pages where sellers can review or search mandatory disclosure rules and documents. The California Association of Realtors created a comprehensive sales disclosure chart in California.

Q&A: More expert tips about disclosures in California

What if I accidentally leave something out of my disclosure?

If you accidentally left something out, you’re probably okay. “If the buyer came to you after the sale, they would have to prove that you left something out on purpose. You’re not likely to forget something important because of the questionnaire,” Anderson says.

What if something breaks or is discovered after the disclosure?

If something breaks, you can write an amended or additional disclosure. “You can do an addendum to your disclosure and do an additional disclosure if you remember something before the deal closes,” Anderson says. “That extends the approval period for the disclosure and gives the buyer the right to back out if they don’t like the new information.”

Are you ready to sell or buy a home in California?

Although it might seem like filling out the TDS for your California home is complicated, trust your real estate agent or real estate attorney to help you navigate the required paperwork and anything else that might pop up during the transaction.

HomeLight’s Agent Match can connect you with top-performing agents in California who have the local experience and market knowledge to successfully guide you through every step of the home-selling or buying journey — from disclosures to closing. Put a top professional in your corner.

Editor’s note: This blog post is for educational purposes only, not legal advice. If you need assistance on what to include on a home seller disclosure form in California, HomeLight encourages reaching out to a lawyer.

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