California has some of the strongest seller disclosure requirements in the country. If you're selling a home here, "I didn't know" is rarely a defense — the standard is what you knew or should have known about the property. Here's a plain-language breakdown.
The Transfer Disclosure Statement (TDS)
The TDS is the foundational document. It covers:
- Physical condition: roof, foundation, plumbing, HVAC, electrical, pool equipment, windows — anything the seller is aware of that's defective or in need of repair
- Neighborhood conditions: airports, military ordnance nearby, industrial facilities
- Known HOA issues: litigation, special assessments, deferred maintenance
You fill it out; your agent reviews it. A buyer who can prove you misrepresented or omitted something on the TDS has grounds to rescind the sale or pursue damages.
Natural Hazard Disclosures (NHD)
A third-party service generates a Natural Hazard Disclosure report (required by law) that covers:
- Fire hazard severity zones (critical in Orange County's hillside areas)
- Flood zones and dam inundation areas
- Earthquake fault zones (Alquist-Priolo zones)
- High fire zones (separate from FHSZ — new in recent years)
- Liquefaction and landslide zones
Buyers receive this before removing contingencies. If your home is in a high-fire zone, expect buyers to ask about insurance options during due diligence.
Material Facts
Beyond the checklist, California law requires disclosing any material fact — information that would affect a reasonable buyer's decision to buy or their offer price. This includes:
- Known disputes with neighbors over easements or property lines
- Past or current insurance claims (water damage, fire, subsidence)
- Deaths on the property within the last three years (with exceptions)
- Pending litigation involving the property
- Homeowners Association pending special assessments or lawsuits
Local Ordinances (OC-Specific)
Many Orange County cities add their own disclosure requirements — local nuisances, rent control status (few OC cities have it, but check), or retrofit requirements (water conservation, seismic, etc.).
Lead Paint and Asbestos
Homes built before 1978 require a Lead-Based Paint Disclosure. Asbestos isn't legally mandated disclosure but is typically surfaced in the seller's disclosures if known, since it's a material fact.
Disclosures feel like they work against sellers, but they actually protect you — a complete, honest disclosure package closes faster and stays closed. If you're planning to list, let's talk before you fill out a single form.
