Seller Disclosures in California: What You Must Legally Reveal Before Selling a Home

Selling a home in California comes with strict legal obligations, including required disclosures to buyers. Failing to provide full and accurate disclosures can result in lawsuits, financial penalties, and even the cancellation of a sale. Understanding your disclosure responsibilities ensures a smooth transaction and protects you from legal risks.

What Are Seller Disclosures?

Seller disclosures are legally required statements that inform potential buyers about known defects, hazards, and issues related to a property. In California, these disclosures are designed to ensure transparency and prevent fraud in real estate transactions.

Required Seller Disclosures in California

The California Civil Code mandates that sellers complete specific disclosure forms, including:

1. Transfer Disclosure Statement (TDS)

The TDS is a comprehensive form in which sellers must disclose material defects, past repairs, and any known issues with the property. This includes:

• Structural defects (e.g., roof leaks, foundation cracks)

• Plumbing, electrical, and HVAC system issues

• Pest infestations and damage

• Previous renovations or repairs

• Neighborhood nuisances or hazards (e.g., noise pollution, flood zones)

  
  

2. Natural Hazard Disclosure (NHD) Report

California law requires sellers to disclose if the property is in:

• A flood hazard area

• A wildfire risk zone

• An earthquake fault zone

• A high-seismic hazard zone

  
  

Sellers usually obtain an NHD report from a third-party company specializing in hazard disclosures.

3. Lead-Based Paint Disclosure (For Homes Built Before 1978)

Federal law mandates that sellers disclose the presence of lead-based paint in homes built before 1978. Buyers must be given a lead hazard pamphlet and an opportunity to conduct a lead inspection.

4. Mello-Roos & HOA Disclosures

If the home is in a Mello-Roos Community Facilities District or governed by a Homeowners Association (HOA), sellers must disclose any special tax assessments, fees, or restrictions.

5. Death on the Property Disclosure

California law requires sellers to disclose if a death occurred on the property within the last three years. Even if outside this timeframe, disclosing this information may be advisable to avoid future disputes.

6. Other Material Disclosures

Sellers should also disclose:

• Mold, asbestos, or environmental hazards

• Water damage or history of flooding

• Property boundary disputes

• Ongoing legal issues involving the property

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What Happens If You Fail to Disclose?

Failing to disclose required information can lead to serious consequences, including:

• Legal action from buyers for fraud or misrepresentation

• Financial damages and potential rescission of the sale

• Delays or cancellation of the transaction

  
  

Buyers have up to two years after discovering a non-disclosure issue to file a lawsuit against the seller.

How Sellers Can Protect Themselves

To avoid legal trouble:

1. Complete all disclosure forms accurately and honestly.

2. Hire a real estate attorney or agent to ensure compliance with California laws.

3. Provide inspection reports upfront to address potential buyer concerns.

4. Keep records of all repairs and maintenance performed on the home.

   
   

Conclusion

California’s strict real estate disclosure laws are designed to protect both buyers and sellers. Being transparent about your property’s condition not only builds trust but also shields you from potential legal disputes. Before listing your home, ensure you understand your obligations and consult a real estate professional if needed.

Need Help Navigating Seller Disclosures?

If you're selling a home in California and want to ensure full legal compliance, contact Sara Naheedy Law APC for expert guidance. Avoid costly mistakes and protect your sale today!