Seller Disclosure Reference
Seller Disclosure Laws in California
California has one of the most extensive disclosure regimes in the US. Sellers of 1-4 unit residential property must deliver a TDS, a Natural Hazard Disclosure, lead paint disclosure, and Mello-Roos disclosures. Failure to disclose known material defects exposes the seller to rescission and damages.
What California requires
California has one of the most extensive disclosure regimes in the US. Sellers of 1-4 unit residential property must deliver a TDS, a Natural Hazard Disclosure, lead paint disclosure, and Mello-Roos disclosures. Failure to disclose known material defects exposes the seller to rescission and damages.
Cal. Civ. Code §§ 1102 et seq. Apply in California (and most states)
- Federal lead paint disclosure (Title X) applies in every state for homes built before 1978 — required regardless of state law.
- Disclose any property defect that materially affects health or safety, even in caveat emptor states.
- Avoid affirmatively misrepresenting any condition — fraudulent concealment exposes sellers to liability everywhere.
- When in doubt, disclose in writing. Documented disclosures are the seller's best defense against post-closing claims.
- Estate sales, foreclosure sales, and certain involuntary transfers are often exempt from form requirements but still subject to fraud principles.
Common questions
Does California require a seller disclosure form?
Yes. California requires the Real Estate Transfer Disclosure Statement (TDS) for sales of residential property covered by Cal. Civ. Code §§ 1102 et seq..
Who regulates real estate sales in California?
The California Department of Real Estate regulates licensed real estate activity in California. Their official site (https://www.dre.ca.gov/) is the most reliable source for current rules.
Does this disclosure law apply if I sell to a cash buyer or investor?
In most states, yes — the form requirement is triggered by the type of property (residential 1-4 units), not the type of buyer. Some states exempt sales to investors specifically, and some sales (foreclosure, REO, estate) are exempt regardless of buyer type. Verify with the state Real Estate Commission link on this page.
What happens if I don't fill out the form, or fill it out incorrectly?
Consequences vary by state. Common penalties include: buyer rescission rights for a defined window after receiving the form (or never receiving it), monetary damages for known concealed defects, and in extreme cases, fraud claims that survive closing. The safest practice is full, written, factual disclosure of everything you know.
Are foreclosure or estate sales exempt from disclosure requirements?
Most states exempt foreclosures, court-ordered sales, and transfers between co-owners or family members from the form requirement. The exemption usually does not extend to fraud claims — sellers who actively conceal known defects can still be liable. Confirm exemption status with the state Real Estate Commission.
Do I have to disclose deaths or crimes that occurred on the property?
This varies dramatically by state. Some states (California) require disclosure of deaths within 3 years; others (Texas) explicitly state that deaths from natural causes, suicide, or accident are not material facts. Disclose if asked directly — most states penalize affirmative misrepresentation more than non-disclosure.
Verify with California
The most reliable source for current California disclosure rules is the California Department of Real Estate.
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