What Do You Have to Disclose When Selling a Home in California? A Complete Guide for Sellers

California has some of the most comprehensive real estate disclosure laws in the country — and for good reason. The state's disclosure framework is designed to protect buyers from purchasing a home with undisclosed defects, and to protect sellers from post-closing legal liability.

For sellers, understanding what you are required to disclose — and what happens if you don't — is one of the most important parts of the home sale process. This guide covers every major disclosure requirement for California home sellers in 2026, written in plain language so you know exactly where you stand before you list.

1. The Transfer Disclosure Statement (TDS) — Your Most Important Document

The Transfer Disclosure Statement is the cornerstone of California's seller disclosure framework. It is required in virtually every residential real estate transaction involving one to four units, and it must be delivered to the buyer as early as possible — typically within 7 days of acceptance.

The TDS is a standardized California Association of REALTORS® form that asks you to answer yes/no questions and provide written explanations about the condition of the property. It covers:

Section I — Items included with the property:

• Range, dishwasher, microwave, trash compactor, garbage disposal
• Washer/dryer hookups, window screens, smoke detectors, CO detectors
• Rain gutters, sump pump, water heater, water softener, security system
• TV antenna, intercom, satellite dish, central heating/cooling, wall/window AC
• Sprinklers, pool, spa, sauna, built-in BBQ, gazebo, carport

Section II — Your knowledge of the property's condition:

• Any significant defects or malfunctions with the roof, walls, foundation, floors, windows, doors
• Plumbing, electrical, HVAC, water heater, and appliance issues
• Pest infestations, water intrusion, flooding history, drainage problems
• Soil movement, settling, slippage, or earth movement
• Shared walls, fences, driveways, or other common areas with neighbors
• Any legal actions, easements, encroachments, or zoning violations affecting the property
• Any modifications, alterations, or additions — with or without permits

2. The Natural Hazard Disclosure (NHD)

California law requires sellers to provide a Natural Hazard Disclosure report identifying whether the property is located in any state-designated hazard zones. This is typically ordered through a third-party disclosure company and costs $100–$200.

The NHD covers six state-mandated zones:

• Special Flood Hazard Area (FEMA) — properties at risk of flooding
• Area of Potential Flooding (dam failure zones)
• Very High Fire Hazard Severity Zone (VHFHSZ) — increasingly relevant across Southern California
• Wildland Fire Area — state responsibility fire zones
• Earthquake Fault Zone (Alquist-Priolo) — proximity to active fault lines
• Seismic Hazard Zone — areas at risk for liquefaction or landslide

For sellers in our area, fire hazard zone designations and seismic disclosures are particularly common. If your property is in a VHFHSZ, buyers will need to factor in the cost of fire insurance — which has become significantly more expensive and difficult to obtain in Southern California.

Important: The NHD also includes several locally required disclosures specific to California counties and cities. Your third-party NHD provider will handle these automatically, but review the report before delivering it to the buyer.

3. Agent Visual Inspection Disclosure (AVID)

In addition to the seller's own TDS, your listing agent is independently required to conduct a visual inspection of the property and disclose their observations using the Agent Visual Inspection Disclosure (AVID) form.

The AVID covers what the agent can observe during a walking tour of the property — interior and exterior, accessible areas only. It does not require the agent to move furniture, open walls, or go behind appliances. But it does require them to note anything visually apparent that could affect the value or desirability of the property.

As a seller, you cannot waive or override the AVID requirement. It is your agent's independent obligation, not yours.

4. Death on the Property

California Civil Code Section 1710.2 requires sellers to disclose any death that occurred on the property within the past three years — regardless of the cause, with one exception.

What must be disclosed:

• Any death occurring on the property within the last 3 years — including natural causes, accidents, and suicide
• The fact that a death occurred — sellers are not required to disclose the specific cause unless directly asked

What does NOT need to be disclosed:

• Deaths that occurred more than 3 years ago — though you may not actively lie if a buyer asks directly
• Deaths that occurred off-site, even if associated with the property
• An occupant's HIV/AIDS status — California law explicitly prohibits requiring disclosure of this

Important: If a buyer directly asks whether a death occurred on the property — even one older than 3 years — you may not lie. California law prohibits affirmative misrepresentation. Silence about older deaths is permitted; lying about them is not.

5. Unpermitted Work and Additions

This is one of the most commonly overlooked disclosure requirements — and one of the most likely to cause post-closing disputes.

If any work was done on your property without obtaining the required building permits — a room addition, a garage conversion, a deck, electrical upgrades, a bathroom addition — you are required to disclose this to the buyer. Unpermitted work can affect the home's appraised value, create insurance complications, and in some cases require the buyer to obtain retroactive permits or demolish non-compliant work.

Common unpermitted work that must be disclosed:

• Garage-to-living-space conversions (ADU conversions)
• Room additions or patio enclosures
• Electrical panel upgrades or subpanels done without permits
• Pool or spa installations
• Structural modifications — wall removal, beam work
• HVAC system replacement without permits

6. HOA Disclosures

If your property is part of a Homeowners Association, California law requires you to provide the buyer with a comprehensive HOA disclosure package. This is typically ordered through the HOA management company and can take 2–3 weeks to arrive — so it should be ordered as soon as escrow opens.

Required HOA documents include:

• CC&Rs (Covenants, Conditions & Restrictions)
• HOA bylaws and operating rules
• Current budget and financial statements
• Reserve fund study and current reserve balance
• Meeting minutes from the last 12 months
• Pending or active litigation involving the HOA
• Any pending or recently levied special assessments
• HOA rental restrictions or caps on the number of renters

Buyers have 3 days to review HOA documents after receipt and may cancel the transaction if they find the HOA financially troubled, litigious, or overly restrictive. Providing complete HOA documents promptly reduces the risk of last-minute cancellations.

7. Local and Supplemental Disclosure Requirements

Beyond the state-mandated forms, California sellers may be subject to additional disclosure requirements depending on the county, city, or specific property characteristics:

Additional disclosures that may apply:

• Mello-Roos and special tax assessments — common in newer Southern California communities
• Military ordnance locations — required if the property is near a former military base
• Window security bars — must disclose whether they have quick-release mechanisms
• Industrial or commercial zone adjacency — some jurisdictions require disclosure of nearby industrial uses
• Methamphetamine contamination — required if property was previously used as a meth lab
• Asbestos and lead-based paint — federally required for homes built before 1978
• Radon — not state-mandated but increasingly expected by buyers in certain areas

Note: The Riverside and San Bernardino County areas of Yorba Linda, Anaheim Hills, Chino Hills, Corona, and Eastvale have a significant number of newer master-planned communities with Mello-Roos Community Facilities District (CFD) taxes. These must be disclosed and are often a point of negotiation — buyers unfamiliar with CFDs are sometimes surprised by the additional annual tax obligation.

8. Complete California Disclosure Forms at a Glance

9. What Happens If You Don't Disclose?

Failing to disclose a known material defect in California is not just an ethical violation — it is a legal one. Post-closing disclosure disputes are among the most common real estate lawsuits in the state, and the outcomes for sellers who failed to disclose can be severe.

Potential consequences of non-disclosure:

• Rescission of the sale — the buyer can potentially unwind the transaction entirely
• Damages — the buyer can sue for the cost to repair the defect, diminution in value, and consequential damages
• Fraud claims — if the non-disclosure was intentional, punitive damages may apply
• DRE complaints — your real estate agent can face license discipline for facilitating non-disclosure

The financial cost of a post-closing lawsuit — attorney's fees, discovery costs, potential settlement or judgment — almost always exceeds whatever the seller thought they were protecting by staying silent. The only rational strategy is full, timely disclosure.

Seller's best protection: Complete your TDS thoroughly, order your NHD early, deliver all documents promptly, and work with an agent who has experience managing the disclosure process from start to finish.

Final Thoughts

California's disclosure requirements can feel overwhelming at first — but they exist for a good reason. A transparent sale protects buyers, protects sellers, and creates the foundation for a clean, lawsuit-free transaction.

The sellers who navigate this process most successfully are those who approach disclosures proactively — completing their TDS thoroughly, ordering their NHD early, surfacing any known issues upfront, and delivering the full disclosure package to buyers without delay. Transparency doesn't just protect you legally; it also builds buyer confidence and reduces the risk of last-minute renegotiations during the inspection period.

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