What Seller Disclosures Mean in California

California has some of the most comprehensive seller disclosure requirements in the country. Understanding what you're required to disclose — and what happens if you don't — protects you throughout and after the sale.

By Shasta Greene · April 8, 2026 · 7 min read

California sellers are held to a high disclosure standard. The 'as-is' myth — the idea that you can sell a home without disclosing known defects — does not apply here. The law requires disclosure of all material facts that affect the value or desirability of the property. Failure to disclose is the single biggest source of post-closing litigation for sellers.

The Transfer Disclosure Statement (TDS)

The TDS is the foundational disclosure document in California. It asks sellers to identify the presence of a long list of systems and features (water heater, dishwasher, garage door opener, etc.) and disclose whether any are known to be malfunctioning or defective. It also asks about flooding, drainage problems, neighborhood noise, encroachments, and more.

The Seller Property Questionnaire (SPQ)

The SPQ goes deeper — asking about permits, alterations, HOA disputes, past insurance claims, environmental hazards, neighborhood conditions, and more. Answer every question truthfully. If you're uncertain whether something requires disclosure, ask your agent or attorney. Err on the side of disclosure.

Natural Hazard Disclosure (NHD)

Sellers are required to disclose if the property is in a Special Flood Hazard Area, High Fire Severity Zone, Seismic Hazard Zone, or certain other natural hazard zones. This is typically handled through a third-party NHD report ordered by the seller or escrow.

What 'Material Fact' Means

A material fact is anything that would affect a reasonable buyer's decision to purchase or the price they would pay. This includes things you know about: roof leaks, past flooding, neighbor disputes, unpermitted additions, mold history, or planned nearby developments that could impact quality of life.

The Consequence of Non-Disclosure

If a seller knowingly fails to disclose a material defect and the buyer discovers it after closing, the seller can be sued for fraud or misrepresentation — potentially for years after the transaction. Being thorough isn't just legal compliance; it's financial protection.

Shasta Greene is an Orange County, California real estate advisor and REALTOR®, DRE #02174153.