Going over everything you need to disclose when selling your home, from location-specific information to material defects and more.
If you’re considering selling a home in California, one part of the process often catches sellers off guard: the required disclosures. These aren’t just optional or best practices; they’re legal obligations that can significantly impact the outcome of your sale.
In California, sellers are required by law to provide a full and honest picture of the property’s condition. This includes the following:
Material defects. Sellers are required to disclose any known material defects that could impact the property’s value or safety. This includes issues like foundational cracks, roof leaks, or pest infestations. Even if you’ve made repairs, it’s essential to be upfront about these past problems so buyers can make informed decisions. Transparency builds trust and helps avoid disputes later on.
This all gets documented through two key forms:
• Transfer Disclosure Statement (TDS)
• Seller Property Questionnaire (SPQ)
These forms go beyond what a standard home inspection might reveal. They cover the home’s heating, cooling, electrical, and plumbing systems, and whether they are functioning as they should. You’ll also need to disclose details about the structure, including the walls, roof, and foundation.
Buyers rely on this information to decide whether to move forward, ask for repairs or credits, or sometimes, walk away. California law gives them that right. Once disclosures are received, buyers typically have three to five days to review them and either renegotiate or cancel the contract.
That’s why we recommend completing disclosures as early as possible, ideally right when your home goes on the market. The sooner buyers receive them, the shorter the time they have to back out later on.
“The golden rule of seller disclosures is simple: when in doubt, disclose.”
What exactly must you disclose? Here are some specific items you should disclose to homebuyers when selling your home:
• Any defects in heating, air conditioning, electrical, or plumbing
• Problems with the roof, foundation, or structure
• History of water damage or flooding
• Presence of asbestos, radon, or lead-based paint
• Zoning or legal use issues
• Known tax or ordinance location concerns
• Natural hazard zones (like flood or earthquake areas)
• Any deaths on the property within the past 3 years
• Repairs you’ve made—even if they fixed the issue
• Nearby registered sex offenders (Megan’s Law)
Here’s a good rule of thumb: if you’re wondering whether to disclose something, you probably should.
Are there any exemptions? Yes, some transactions are exempt from certain disclosures. These include properties transferred under a court order or sales by someone who’s never occupied the home, such as a landlord or a successor trustee. Even then, it’s smart to disclose anything you know to avoid potential legal complications.
Will disclosures scare buyers away? This is a common concern for home sellers. But clear and early disclosures build trust. When buyers see you’ve been transparent, they feel more confident moving forward. It also strengthens your position in negotiations, because if you’ve already disclosed an issue, it’s much harder for the buyer to use it later to ask for credits or price reductions.
Disclosures help the deal move forward smoothly. They prevent surprises. They protect you from future legal trouble. And they make buyers feel more comfortable moving ahead.
One more tip: If the home is vacant, some buyers may knock on a few doors nearby. Neighbors can reveal past repairs, issues, or nuisances you didn’t mention. So, the best move? Be honest and thorough upfront.
Selling your home can be overwhelming, but you don’t have to go through this alone. We’ve helped sellers complete these forms correctly for thousands of homes. We can walk you through it all, make sure nothing gets missed, and help you submit it early to avoid problems down the line.
Let’s chat if you want more tips on preparing your home for a top-dollar sale. Just call or text at (916) 547-3615 or (123) 455-7899. If you have any questions, you can also email paul@KnowledgeRE.com. Selling your home should be a positive, straightforward experience. With our support, it can be.
