Selling real estate in California means doing more than just finding a buyer. State law requires you to disclose any known issues that affect the property’s value, safety, or livability. If you fail to disclose these problems, the buyer can sue you for fraud, breach of contract, or misrepresentation. You could face court-ordered damages, legal fees, or even be forced to cancel the sale.
What sellers must disclose
You must reveal any known problems with the home that could influence a buyer’s decision. These include structural damage, roof leaks, foundation issues, plumbing defects, electrical faults, and pest infestations. Even repaired problems must appear in your disclosure if they affect the home’s current condition or future use.
California law makes sellers complete a Transfer Disclosure Statement (TDS). This document lists the home’s systems, appliances, and features. It also gives you space to explain any known problems. Give accurate and honest answers, since false or missing information can lead to legal issues later.
Hidden problems still apply
The law doesn’t limit disclosure to what buyers can see. If you know about mold inside walls, past flooding, or hidden electrical issues, you still have to report them. The law doesn’t excuse you just because the problem isn’t visible.
Buyers have the right to receive all material facts about the property. If something could impact their choice, include it. Staying silent counts as deception under California law.
Other documents required
Along with the TDS, you must also give the buyer a Natural Hazard Disclosure (NHD) form. This shows whether the property sits in a fire, flood, or earthquake zone. Based on the home’s age and location, you may also need to provide reports about lead-based paint or recent repairs and upgrades.
Some cities and counties require extra forms or follow different rules. Check your local government’s regulations to meet all requirements.
Honesty protects your interests
Clear and complete disclosures help you avoid legal problems and build trust with buyers. When you share known issues, you give buyers a full picture of what they’re purchasing. If you hide a serious problem and the buyer discovers it after closing, you could end up paying for it.
