Buying a home is one of the biggest purchases you will ever make. California has rules in place to protect you, but you need to know what to look for before you sign anything.
How Texas law governs non-compete clauses
California Civil Code Sections 1102 through 1102.14 require sellers to hand over a Transfer Disclosure Statement (TDS). This form is where sellers list known defects, past repairs or anything else that could affect the home’s value.
If you get this form late or it changes, Civil Code Section 1102.3 gives you three to five days to walk away from the deal.
“As-is” sales and hidden defects
Some homes are sold “as-is,” which means the seller will not make repairs. But it does not mean they can hide problems they already know about. If a seller is aware of structural damage, unpermitted work or foundation issues, they still have to tell you.
Natural hazard disclosures
Sellers must provide a Natural Hazard Disclosure (NHD) report identifying whether a property sits in a designated high-risk zone. Review it carefully before you proceed. Common zones disclosed in the NHD include:
- Special Flood Hazard Area: May require flood insurance under federal guidelines.
- State Fire Responsibility Area: Can affect your ability to obtain standard homeowner policies.
- Earthquake fault zone: May trigger mandatory retrofitting requirements.
Living in any of these zones can raise your insurance costs significantly.
Statutes of limitations after closing
If a problem surfaces after escrow closes, a legal deadline applies. California’s general statute of limitations for post-closing non-disclosure claims is two years. If you discover fraud, California Code of Civil Procedure Section 338 may extend that window to three years from the date of discovery.
Speak with a real estate attorney before you close
These rules interact in ways that are not always obvious, and the consequences of missing a deadline or misreading a disclosure can be costly. An attorney can help you understand your options before you commit to a purchase.
