California home sellers must disclose known material facts about the property. In a typical sale this is done through the Transfer Disclosure Statement, a Seller Property Questionnaire, a Natural Hazard Disclosure, a lead-based paint disclosure for older homes, and HOA and special tax documents where they apply. The exact forms depend on the property.
What is a material fact?
A material fact is something that would affect the value or desirability of the property to a reasonable buyer. If you know about it, you are expected to disclose it, whether or not a form asks about it directly.
Common examples include roof or plumbing leaks, foundation or drainage problems, unpermitted work, past insurance claims, boundary or neighbor disputes, and pest or mold issues. When you are unsure whether something counts, the safer course is to disclose it. Your listing agent can explain the forms, and a real estate attorney can answer legal questions.
Which disclosure forms do California sellers usually complete?
Most sales of a house or condo involve the same core set of documents. The listing agent and the escrow company provide them, and the list varies with the age, location and type of property.
- Transfer Disclosure Statement (TDS). A form set out in state law in which the seller describes the home’s features and any known defects or problems.
- Seller Property Questionnaire (SPQ). A more detailed set of questions about repairs, water intrusion, pets, neighborhood conditions and other items, commonly used along with the TDS.
- Natural Hazard Disclosure (NHD). A statement, usually based on a report from a third-party company, showing whether the property is in mapped flood, fire, earthquake fault or seismic hazard zones.
- Lead-based paint disclosure. Required by federal law for homes built before 1978.
- HOA documents. Governing documents, financial information and assessment details when the home is in a homeowners association.
- Mello-Roos and special assessment notices. Notices of special taxes or assessments that are collected with the property tax bill.
- Safety compliance statements. Confirmation that smoke alarms and carbon monoxide detectors are installed and that the water heater is braced or strapped as required.
Your agent may also have you sign for state booklets on environmental hazards and earthquake safety, and report on any known issues those booklets cover.
Are there extra disclosures for some properties?
Yes. Some disclosures apply only to certain homes or areas. Homes in mapped high fire hazard zones have added disclosures about fire hardening and defensible space, which often come up with hillside and rural properties such as those in La Cresta and De Luz.
Properties with a septic system, private well, solar system, private road or shared maintenance agreement usually call for additional information as well. Many newer communities in Menifee and nearby cities have special tax districts, so those notices are common there.
Does selling as-is mean I can skip disclosures?
No. Selling as-is means you are not agreeing to make repairs. It does not remove the duty to disclose known material facts, and the standard disclosure forms are still completed.
What if I have never lived in the property?
You still disclose what you know. Owners of rentals and inherited homes often have limited knowledge, and the forms allow you to say so. Certain transfers, such as some probate and trust sales, are exempt from the Transfer Disclosure Statement itself, but the duty to disclose known material facts still applies. Ask your agent, and an attorney if needed, which forms your sale requires.
When does the buyer get the disclosures?
Buyers normally receive the disclosures soon after an offer is accepted, within the time set in the purchase contract. Some sellers complete them before listing so they are ready to send. If disclosures arrive late or are changed later, the buyer may have a limited right to cancel, so finishing them early and accurately helps keep the escrow on track.
If you have questions about the process, you can contact Aimee.
Frequently Asked Questions
Do I have to disclose a problem that has already been repaired?
Generally yes. The forms ask about past issues and repairs as well as current ones. Describe what happened and what was done, and include receipts or reports if you have them.
Do real estate agents make disclosures too?
Yes. In California the agents in a residential sale conduct a visual inspection of the accessible areas of the property and note what they observe. This is in addition to the seller’s disclosures, not a replacement for them.
Is a home inspection the same as a disclosure?
No. Disclosures are the seller’s statements about what the seller knows. An inspection is the buyer’s own investigation by a professional the buyer chooses. Most buyers rely on both.
What happens if a seller leaves something out?
An incomplete disclosure can lead a buyer to cancel or renegotiate during escrow, and it can lead to legal claims after closing. If you are unsure how to handle a specific item, ask a real estate attorney before you sign the forms.
Have Questions About Selling?
Aimee Ghafouri is a real estate agent based in Temecula who grew up in Murrieta and works with buyers, sellers and investors across the Temecula Valley and southwest Riverside County.
Aimee Ghafouri, 951 Properties, CAL DRE #02193341. This page is general information, not legal, tax or financial advice. Equal Housing Opportunity.
