Understanding Seller Disclosures in California: What Homeowners Should Know

By Ainsley Hughes, Realtor®

Seller disclosures are one of the most important parts of a California real estate transaction, and they are also one of the most misunderstood. These documents help buyers understand the property and protect sellers by making sure information is shared clearly and accurately. When sellers know what to expect, the process feels much less overwhelming.

Here is a straightforward look at the key disclosures in a typical California home sale.

Why Disclosures Matter

California requires sellers to disclose known material facts about the property. This includes past repairs, ongoing maintenance issues, and anything that could reasonably affect a buyer’s decision. Clear disclosures help build trust, reduce surprises, and support a smoother transaction.

The Core Documents

Transfer Disclosure Statement (TDS)

The TDS asks about the property’s condition, systems, and features. It includes questions about the roof, plumbing, electrical systems, appliances, and any upgrades.

Seller Property Questionnaire (SPQ)

The SPQ dives deeper into history and knowledge of the property. It covers insurance claims, repairs, additions, neighborhood conditions, and any known issues.

Natural Hazard Disclosure Report (NHD)

A licensed NHD provider prepares this report. It outlines whether the property is in a fire hazard zone, flood zone, fault zone, or other mapped area. It is a factual, data-based document.

Local Disclosures

Depending on the area, sellers may also complete local forms relating to water-saving fixtures, retrofit requirements, or community-specific items.

How Accurate Should Sellers Be?

The best approach is simple: disclose what you know. Sellers are not required to investigate or hire contractors unless the contract states otherwise, but they should be truthful about information they already have.