28% of buyers in the US discover hidden issues long after closing the deal. One-third of them blame sellers for not being upfront about it. The last thing you want is for your buyer to sue you for undisclosed issues. A California seller’s disclosure helps you prevent that.
The disclosure requirements vary by state, and just one unrevealed issue could cost you a fortune! The good news? Houzeo, California’s best home selling website, removes this risk by automatically assigning the right forms for your sale. takes away that worry by automatically selecting the right forms for your sale. Plus, you can complete and sign everything online in just a few steps.
KEY TAKEAWAYS
- When to Disclose: Share your California seller disclosure form with buyers early on, ideally before offers come in. This builds trust and helps avoid deal delays.
- What to Disclose: List down defects like roof leaks, mold, electrical issues, or legal disputes that impact home value.
- Hidden Problems Count Too: Even if a defect isn’t easy to see, like foundation cracks or water damage, you still have to report it.
- Disclosures Can Save You Thousands: Around 77% of real estate lawsuits are linked to disclosure issues. Being upfront helps you avoid costly legal battles.
What Is a Seller’s Disclosure in California?
A seller disclosures California is a legal document that details your home’s condition and history. You must disclose issues like water damage or foundation cracks to avoid legal consequences. Honesty ensures smooth transactions and protects both parties involved.
If your property has experienced damage from natural calamities like earthquakes or wildfires, this must be included in your house disclosure. Skipping this critical step could lead to legal fallout, sliding downhill like a mudslide. Full disclosure protects you from future liability claims.
What Are the Mandatory Real Estate Disclosures in California?
California law requires you to share everything about your property’s condition when selling a house in CA. However, if you sell your house for cash, you can skip this step. Here’s what you need to disclose before closing the deal:
- Real Estate Transfer Disclosure Statement (RETDS): This is your go-to form for letting buyers know about any major issues with the property. This can include issues ranging from plumbing problems to structural issues.
- Natural Hazard Disclosure: In California, you’ve got to disclose if your home sits in a wildfire, earthquake, or flood zone.
- Lead-Based Paint Disclosure: Got any vintage charm? You must disclose if there’s lead-based paint. Further, buyers retain the right to conduct a lead-based paint inspection.
- Megan’s Law Disclosures: You must let buyers know if the property is near a registered individual under Megan’s Law.
- Homeowners Association Disclosures (HOA): Got a homeowners association? Let buyers know the details about the fees and rules. Do not forget to inform the buyers about any pending legal actions involving the HOA California.
- Smoke Detector and Water Heater Compliance: Verify smoke detectors and water heaters comply with California real estate disclosure laws and safety codes. Ensure all units are operational per state requirements.
The No-Gos: What You Don’t Have to Disclose
The seller’s disclosure form does not require you to report:
- Death on the Property (After 3 Years): You don’t need to disclose a death if it occurred over three years ago, unless directly asked.
- Paranormal Activity: California’s residential property disclosure excludes haunted homes. Stigmatized properties need not be revealed.
- HIV/AIDS Status: The health status of former or current occupants is private, which you not necessary for the disclosure.
- Neighborhood Crime Stats: While major hazards must be shared, general crime history doesn’t require disclosure.
- Prior Owner’s Issues: A prior owner’s personal history, such as divorce, isn’t part of seller’s property disclosure in real estate.
What is an Exempt Seller Disclosure in California?
California’s Home Disclosure Act exempts some home sales from disclosures. The Real Estate Transfer Disclosure Statement (RETDS) isn’t required for foreclosures or co-owner transfers. These exceptions streamline certain property transactions.
| Sr. No | Exemptions | Explanation |
|---|---|---|
| 1. | Sales Before Public Reports | Transfers that are made before furnishing public reports under Section 11018.1 of the Business and Professions Code, or made without Section 11010.4 of the Business and Professions Code. |
| 2. | Sales Due to Court Orders | Court-ordered sales, such as estate or foreclosure sales, follow specific procedures and are exempt from RETDS requirements. |
| 3. | Mortgage/Foreclosure Exemptions | Transfers to mortgage lenders or those occurring in foreclosure sales. This also includes acquisitions in lieu of foreclosure. |
| 4. | Exempt Fiduciary Transfers | Executors of wills or fiduciaries handling trusts, guardianships, or conservatorships. |
| 5. | Transfers Between Co-owner | Transfers between co-owners are exempt from disclosure requirements in real estate transactions. Joint owners don't need TDS on real estate for transfers. |
| 6. | Transfers to Family | Any transfer made to a spouse or person/s in the lineal line of consanguinity. These transfers within the immediate family line are often treated differently. |
| 7. | Divorce/Separation Transfers | Transfers resulting from divorce decrees have specific legal considerations. Settlement agreements between spouses also lead to property transfers. |
| 8. | Unclaimed Property Transfers | Transfers administered by a Controller of Unclaimed Property. The Controller handles transfers of properties deemed unclaimed by owners. |
| 9. | Tax-Defaulted Property Transfers | Any transfers carried out by a collector of a tax-defaulted vacant residential property, or where the property is deeded for taxes to the state, county, or public agency under the California Revenue & Taxation Code. |
| 10. | Government Entity Purchases | Government entities purchasing property follow specific acquisition procedures. These public agency buyers often have distinct reporting requirements. |
| 11. | Non-Residential Portion Sale | Transferring only a section of the larger property has different rules. This applies when that portion is not a single-family home. |
| 12. | Limited Duration Sales | Short-term property sales are exempt from disclosure on house requirements. This applies to temporary ownership transfers under state laws. |
What Is the Penalty for an Incorrect California Seller’s Disclosure Form?
The California seller’s disclosure notice legally requires honest reporting of property defects. Intentionally lying could even lead to perjury charges.
When in doubt, consult a real estate attorney. Skipping disclosures or downplaying issues risks fines or even license suspension from the California Department of Real Estate (DRE). Transparency isn’t just safer—it’s smarter.
Sellers must understand the statute of limitations for failure to disclose real estate issues. This awareness helps them avoid potential legal repercussions.
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How to Minimize Issues in the California Seller’s Disclosure Form?
The number of homes for sale in California is rising, buyers may choose to look for a more suitable house if they find inconsistencies with your disclosure. Here are the tips to save you from any such issues:
- Complete a Pre-Sale Inspection: Get a thorough home inspection and fix what you can. This reduces the number of defects you have to disclose.
- Review the Disclosure Carefully: You can compare your forms with the ones offered by top For Sale By Owner site to make sure you didn’t forget anything important.
- Consult with Professionals: If you’re unsure about the disclosure agreement, consult a real estate attorney in California. They understand real estate disclosures California laws, and can help you with the seller disclosure requirements.
- Keep All Bills and Records: These act as supporting documents to your seller disclosure. They also prove that you have addressed any known issues.
- Be Aware of California-Specific Disclosures: Make sure you include mandatory disclosures like Natural Hazard Reports, Mello-Roos taxes, and lead paint in homes built before 1978.
How Important Is the Seller’s Disclosure Statement in California?
Disclosures for real estate are essential for transparency in California home sales. Buyers quickly avoid properties with hidden flaws, so upfront honesty keeps deals moving. Proper disclosures protect both sellers and buyers in the transaction.
Once your disclosures are ready, the next step is listing. With the best Flat Fee MLS listing service in California, you can get your home on the market fast, typically within 48 hours, while saving thousands by avoiding traditional agent commissions.
