California’s Seller Disclosure
California’s seller disclosure requirements are very strict and thorough. California law provides a standard format, identified in Civil Code Section 1102, which must be used by sellers in making these disclosures. The resulting form, called the “Transfer Disclosure Statement” (TDS), can be obtained from your California real estate agent (there’s also a draft online from the California Association of Realtors).
As a seller in California, you must also complete an additional seller disclosure form, the Natural Hazard Disclosure Report/Statement, prior to any home sale. This can be obtained either from your real estate agent or online.
The TDS form covers a broad range of topics, from structural information about your home such as a leaky roof to whether any deaths occurred on the property in the last three years. You will need to include information about all appliances in the home, including which are included in the sale as well as whether they are operational. You will also need to disclose any room additions, damage, or neighborhood noise problems.
The California Natural Hazard Disclosure Statement poses several “yes/no” questions regarding things like whether your property is located in a special flood hazard area, in an area with a substantial forest fire risk, or in an earthquake fault zone. The local government of your city or county can provide you with more information about these classifications, as can your real estate agent.
Additional seller disclosure statements, such as those pertaining to special study zones or purchase money liens might also be required, depending on the location and details of your real estate transaction. Your local real estate agent can help you determine whether any additional seller disclosures are required.
Finally, you must also let a buyer know that information regarding the location of registered sex offenders is available from local law enforcement agencies and can be found online at the state-operated website.
There is no specific deadline by which you need to provide these seller disclosures to a prospective buyer. The intent of the law, however, is to get them to the buyer in a timely fashion. It’s best to give the seller disclosures to the buyer as soon as possible so the buyer can make an informed decision. Sellers should line up all disclosures, inspections, and other paperwork prior to listing their property so that everything is ready for serious offers to be accepted.
If you do not give the required seller disclosures to the buyer by the time the two of you have signed the purchase agreement, then the buyer has the option to terminate the deal. (After you deliver the seller disclosure form, the buyer’s deadline for cancelling is three days after delivery in person or five days after delivery by mail.) Providing these disclosures to serious potential buyers as soon as possible decreases the likelihood of a buyer cancelling the offer later due to information found in the disclosures.
