California Seller Disclosure Checklist
Complete Guide
11 required disclosures, explained. Understand what you must provide, who prepares each document, common mistakes, and the consequences of missing one.
SELLER OBLIGATIONS
What California Sellers Must Disclose
Selling a home in California comes with one of the most robust seller disclosure requirements in the United States. California law requires sellers to proactively disclose all known material facts that could affect the value or desirability of a property — in writing, before close of escrow. This obligation cannot be waived by contract and applies whether the sale is on the open market, off-market, or between family members.
The disclosure process typically begins within days of accepting an offer, though experienced sellers complete their disclosures before going to market to reduce rescission risk. California Civil Code §1102 governs the Transfer Disclosure Statement — the foundational document — but the full disclosure package spans federal law (lead paint), state tax code (Form 593), local ordinances (energy retrofits, transfer taxes), and HOA governing documents.
Missing or misrepresenting a disclosure exposes sellers to serious legal risk. California courts have consistently held that sellers cannot claim ignorance of material facts that were readily discoverable. Non-disclosure claims frequently arise months or even years after close, when buyers discover defects or tax obligations that were not properly communicated. The statute of limitations for fraud-based disclosure claims in California is generally 3 years from discovery.
The 11 items in this checklist cover every disclosure category a Silicon Valley seller is likely to encounter. Each item includes what it is, who prepares it, the most common mistakes agents see in escrow, and the penalty exposure for getting it wrong. Use the checkboxes to track your progress — your state is saved automatically in your browser. When you are ready, the specialist tools linked within each item give you deeper analysis for the most complex disclosures.
This checklist applies to single-family homes, condominiums, and 1–4 unit residential properties in California. Commercial properties, raw land, and REO (bank-owned) transactions have additional requirements not covered here. For property-specific guidance, the best next step is a pre-listing consultation — the link at the bottom of this page gets you on the calendar.
Internal links: Natural Hazard Disclosure lookup · Mello-Roos calculator · Form 593 decision tree · Seller net proceeds calculator · Capital gains calculator · Building permits guide
CHECKLIST
11 Required Disclosures
The TDS (CAR Form TDS) is the foundational disclosure document required by California Civil Code §1102 for all 1–4 unit residential sales. Sellers must disclose in writing every known material fact that could affect the property's value or desirability — from roof condition and water intrusion to neighbor disputes, noise, and HOA violations.
The listing agent independently inspects the property and completes Part III of the form, noting anything they observed that the seller may have missed. Both signatures are required before delivery to the buyer.
The seller completes Part II (the seller portion). The listing agent completes Part III (agent's visual inspection). Both sign and date. The seller's agent typically provides the blank form and reviews it for completeness before sending to the buyer's agent.
- Leaving fields blank instead of writing "N/A" or "Unknown"
- Failing to disclose past repairs even if the issue is "fixed"
- Omitting neighbor disputes, easements, or access issues
- Not disclosing past insurance claims or litigation
Failure to deliver a TDS gives the buyer the right to rescind within 3 days of delivery (5 days if mailed). Sellers who knowingly omit material facts face fraud liability, rescission, and potential damages including repair costs and loss of value. Agents who fail to complete their inspection portion may face DRE discipline.
The NHD report identifies whether a property falls within any of six mandatory California hazard zone categories: Special Flood Hazard Area (FEMA), Area of Potential Flooding, Very High Fire Hazard Severity Zone (CAL FIRE), Wildland Fire Area, Earthquake Fault Zone (Alquist-Priolo), and Seismic Hazard Zone (liquefaction or landslide). Some reports also include optional disclosures such as tsunami inundation and airport influence areas.
The seller orders the NHD report through a licensed third-party provider (JCP LGS, First American Natural Hazard Disclosures, Zonehaven, or similar). The title company often coordinates this. Cost: $50–$100, typically paid by the seller. Delivery to the buyer is usually bundled with the TDS package.
- Ordering too late — NHD must be in buyer's hands before close
- Not reviewing the report before delivery to understand what it says
- Assuming a property "looks safe" without actually checking
- Missing supplemental disclosures included in premium NHD packages
Failure to provide an NHD report is a statutory violation. Buyers may have grounds to rescind the transaction and seek damages. Fire zone non-disclosure has led to multi-million-dollar litigation in Northern California following wildfire events.
Mello-Roos Community Facilities Districts (CFDs) levy special taxes on properties to fund public infrastructure — roads, schools, parks, fire stations — typically in newer developments. If a property falls within a CFD, California Government Code §53341.5 requires the seller to provide a written Notice of Special Tax disclosing the current annual amount, the CFD name, and the expiration date of the tax.
The Notice of Special Tax is typically obtained from the CFD administrator (often the city or a special district), the county tax collector, or via the title report. The seller provides it to the buyer; it is often included in the preliminary title report package. Amounts can be $1,000–$5,000+ per year and are separate from regular property taxes.
- Assuming Mello-Roos only applies to brand-new construction
- Not disclosing a small CFD tax because it seems insignificant
- Providing outdated annual amounts from a prior year's tax bill
- Confusing HOA fees with Mello-Roos special taxes
Mello-Roos non-disclosure is one of the most commonly litigated seller disclosure failures in California. A buyer who discovers a $3,000/year Mello-Roos tax post-close — one that was not disclosed — has a strong rescission and damages claim. Courts have found sellers liable for years of future tax payments in egregious cases.
Federal law (42 U.S.C. §4852d, the Residential Lead-Based Paint Hazard Reduction Act) requires sellers of residential properties built before January 1, 1978 to: (1) disclose all known lead-based paint hazards and provide any available records or reports; (2) provide buyers with the EPA pamphlet "Protect Your Family from Lead in Your Home"; and (3) give buyers a 10-day period to conduct a lead inspection, unless waived in writing.
The seller signs the Lead-Based Paint Disclosure form (CAR Form FLD). The listing agent also signs, certifying they informed the seller of their obligations. Both buyer and buyer's agent sign acknowledging receipt. In Silicon Valley, many pre-1978 bungalows, ranch homes, and Eichlers require this disclosure.
- Skipping the form for homes "built in the late 70s" without verifying the exact year
- Failing to provide the EPA pamphlet (required separately from the form)
- Not giving buyers their 10-day inspection period unless waiver is signed
- Confusing prior paint reports with the required disclosure form
Federal civil penalties up to $18,364 per violation, enforced by HUD and EPA. Courts can also award treble damages (3x actual damages) in cases where sellers knowingly concealed lead hazards. This is a federal matter, not just a contract dispute — penalties apply even when the buyer suffered no actual harm.
Under Proposition 13, when a property changes hands, the county reassesses it at the sale price. The difference between the prior assessed value and the new assessment triggers a "supplemental tax bill" to the new owner. California Civil Code §1102.6c requires sellers to provide a written notice informing buyers that they may receive supplemental tax bills reflecting this reassessment, separate from the regular annual property tax bill.
The seller or listing agent provides the written notice. CAR's standard disclosure package includes a Supplemental Statutory and Contractual Disclosures form (CAR Form SSD) that covers this requirement. The county assessor issues the actual supplemental bill to the buyer 6–18 months after close — a common source of buyer surprise and post-close calls to their agent.
- Assuming the title report or escrow instructions covers this notice
- Not explaining that supplemental bills arrive months after close
- Failing to clarify that the buyer (not seller) pays the post-close supplemental
- Not noting that there can be two supplemental bills if close spans a fiscal year
Failure to provide the notice can expose the seller to a misrepresentation or breach of contract claim if the buyer incurs unexpected tax costs. While rarely litigated as a standalone claim, it frequently appears as a contributing element in broader post-close disputes. The best risk mitigation is including it in the pre-offer disclosure package.
California Health and Safety Code §13113.8 requires working smoke detectors in each bedroom (and in hallways adjacent to sleeping areas). Health and Safety Code §17926 requires carbon monoxide detectors within 3 feet of each sleeping area in single-family homes built before 2011. Sellers must provide buyers with a written statement of compliance, signed under penalty of perjury.
The seller completes and signs the Smoke Detector and Water Heater Statement of Compliance (CAR Form WHSD, or county equivalent). This certifies that detectors are installed, operable, and code-compliant. If detectors are missing or inoperable, the seller must install or replace them before close. Cost is typically $20–$60 per unit.
- Not testing detectors before signing the compliance statement
- Missing detectors in bonus rooms or sleeping lofts used as bedrooms
- Using outdated 9V battery-only detectors that may not meet local code
- Forgetting CO detectors in homes with attached garages or gas appliances
Escrow may refuse to close without a signed compliance statement. Sellers who falsely certify compliance expose themselves to civil liability if a post-close fire or CO incident reveals non-compliant detectors. Some jurisdictions (San Jose, for example) perform point-of-sale inspections and can issue correction notices that delay close.
California Health and Safety Code §19211 requires all water heaters to be braced, anchored, or strapped to resist seismic motion — a critical safety measure in earthquake country. This reduces the risk of the water heater toppling during a quake, which can rupture gas lines and cause fires. Sellers must certify compliance in writing before close of escrow.
The seller signs the Water Heater Strapping section of the same CAR Form WHSD used for smoke and CO detectors. If strapping is not already in place, a licensed plumber or handyman installs a code-compliant strap kit. Cost: typically $75–$200 installed. The listing agent should verify during the pre-listing walkthrough — inspectors and buyers always check this.
- Assuming a newer water heater is already strapped without checking
- Using inadequate strapping hardware that does not meet code
- Forgetting tankless water heaters (they require wall anchoring, not strapping)
- Not disclosing if strapping was added during the listing period
Similar to smoke detectors — escrow requires compliance, and post-close discovery of non-compliant installation can create liability. The primary risk is a major seismic event causing injury or property damage that could be traced to an improperly secured water heater in a home where the seller certified compliance.
California Revenue and Taxation Code §18662 requires escrow to withhold 3.33% of the gross sale price from sellers who are not California residents, unless an exemption applies. Form 593 (Real Estate Withholding Statement) is the document used to either authorize the withholding or certify that an exemption applies. Common exemptions include principal residence, sale price under $100,000, and qualifying 1031 exchanges.
The seller completes and signs Form 593 before close of escrow. Escrow remits any withheld funds to the California Franchise Tax Board (FTB) within 20 days after the end of the month in which the transaction closes. For a $1.5M sale by a non-resident with no exemption, that is $49,950 withheld at close — a significant cash-flow item.
- Assuming a principal residence exemption applies without confirming occupancy requirements
- Not realizing withholding is on gross price, not net proceeds after mortgage payoff
- Forgetting Form 593 is required even for sellers claiming an exemption
- Missing the FTB remittance deadline (20 days after month-end)
Escrow bears liability for the withheld amount if they fail to collect and remit. Sellers who incorrectly claim an exemption face FTB penalties, interest, and potential audit. Non-resident sellers who do not complete Form 593 may find escrow refuses to close until the form is executed. Use the interactive decision tree below to determine your withholding obligation in minutes.
Some California cities and counties require point-of-sale energy efficiency or water conservation upgrades as a condition of property transfer. Requirements vary significantly by jurisdiction. [VERIFY with your city's permit office before listing] — San Jose, Berkeley, San Francisco, Los Angeles, and several other Bay Area cities have enacted or proposed such ordinances. Failure to comply can block close of escrow.
The seller is responsible for determining applicability by contacting the city building or permit office before listing. If upgrades are required, the seller must complete them (or arrange credits in escrow) and obtain any required city certification or permit sign-off. Your listing agent should know your specific city's requirements — ask before you list.
- Assuming no local ordinance applies without checking with the city
- Discovering a required retrofit in the middle of escrow (delays close)
- Not budgeting for potential low-flow fixture or insulation upgrade costs
- Missing exemptions for older homes or certain property types
Penalties vary by municipality. In cities with active enforcement programs, close of escrow may be blocked until a compliance certificate is issued. Post-close discovery of a required retrofit can create a breach of contract or misrepresentation claim against the seller if the condition was omitted from the disclosure package.
California Civil Code §4525 requires sellers of properties within a common interest development (HOA, condo, PUD) to provide buyers with a comprehensive document package: CC&Rs, bylaws, rules and regulations, the most recent 12 months of board meeting minutes, the current annual budget, a reserve study summary, the current assessment schedule, and disclosure of any pending litigation or special assessments levied against the development.
The HOA or its management company assembles and provides the package, typically through a formal "resale demand" or "resale disclosure" process. Services like HomeWise Docs or CondoCerts coordinate delivery. Turnaround: 5–10 business days. Seller pays the document fee, typically $200–$500 depending on the HOA's management company.
- Ordering documents too late — plan for 10 business days minimum
- Not disclosing pending or approved special assessments
- Providing outdated financials (must be within 12 months)
- Failing to disclose active HOA litigation the seller knows about
Buyers have a statutory right to rescind within 3 days of receiving HOA documents. If documents are never delivered, that rescission right remains open indefinitely. Post-close discovery of undisclosed pending assessments (which can be tens of thousands of dollars in large condo projects) is a frequent source of litigation. The HOA's financial health — reserves, deferred maintenance, pending litigation — is material to the property's value and marketability.
California Revenue and Taxation Code §11911 imposes a county Documentary Transfer Tax (DTT) of $1.10 per $1,000 of consideration on real property transfers — typically split between buyer and seller by custom. Many cities impose an additional city-level transfer tax on top of the county rate. San Jose charges $3.30 per $1,000 (total $4.40 with county). Sellers must understand and disclose how the transfer tax affects their net proceeds, as it is a material closing cost.
The title company calculates and collects transfer taxes at close. The seller does not complete a separate disclosure form for transfer tax — it appears on the closing statement (HUD-1 or ALTA Settlement Statement). However, it is the seller's responsibility to understand the cost before listing. For a $1.5M San Jose sale, the combined transfer tax is approximately $6,600 — a meaningful line item.
- Not accounting for the city transfer tax (only thinking about county)
- Being surprised by the amount at close when it reduces net proceeds
- Not understanding that transfer tax is negotiable in the purchase agreement
- Missing high-value transfer tax cities (San Francisco charges up to 3% on $25M+)
Transfer taxes are collected at close by escrow — there is no separate penalty for not knowing the amount. The risk is financial: sellers who have not modeled their net proceeds accurately may be caught off guard at the closing table. Use the seller net proceeds calculator to model your total closing costs, including transfer taxes, by city.
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FREQUENTLY ASKED QUESTIONS
Seller Disclosure FAQs
What disclosures are required when selling a home in California?
When must seller disclosures be delivered in California?
What happens if a California seller fails to disclose a known defect?
Does a California seller have to disclose if a death occurred in the home?
Who pays for seller disclosures in California?
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As a licensed REALTOR and Mortgage Originator, I walk every seller through their full disclosure package before we list — identifying issues early, pricing them accurately, and presenting them to buyers in a way that builds confidence rather than creating contingencies.