California Real Estate Disclosure Requirements
California requires sellers to disclose property conditions.
Is California a Disclosure State?
YESCalifornia has the most comprehensive disclosure requirements in the United States. Sellers must complete both a Transfer Disclosure Statement (TDS) and a Natural Hazard Disclosure (NHD) report. California is the only state requiring NHD reports, covering six specific hazard zones.
Property Condition Disclosure
RequiredOfficial Form:
Real Estate Transfer Disclosure Statement (TDS)
California Civil Code Sections 1102-1102.14 require sellers of 1-4 unit residential properties to complete the Transfer Disclosure Statement (TDS). The form covers appliances, structural components, room additions, damage history, neighborhood noise, and more. Sellers must personally complete the TDS - agents cannot fill it out on the seller's behalf. The requirement applies even to "as-is" sales.
Environmental Hazards
RequiredThe TDS requires disclosure of known environmental hazards including lead-based paint, asbestos, radon gas, formaldehyde, fuel/chemical storage tanks, and contaminated soil or water. Deaths on the property within the past 3 years must be disclosed (except AIDS-related deaths, which are protected). Properties in Mello-Roos special tax districts require additional disclosure.
Specific Hazards Covered:
Natural Hazards
RequiredCalifornia is the ONLY state requiring a Natural Hazard Disclosure (NHD) report. Under Civil Code 1103, sellers must disclose if the property lies in any of six designated hazard zones: (1) Special Flood Hazard Area, (2) Dam Inundation Zone, (3) Very High Fire Hazard Severity Zone, (4) Wildland Fire Area, (5) Earthquake Fault Zone, (6) Seismic Hazard Zone (liquefaction/landslide). Third-party NHD companies typically prepare these reports.
Specific Hazards Covered:
Key Points for California
- 1California has the strictest disclosure requirements in the U.S.
- 2Two forms required: TDS (property condition) + NHD (natural hazards)
- 3California is the ONLY state requiring NHD reports
- 4Seller must personally complete the TDS - agents cannot fill it out
- 5Deaths within 3 years must be disclosed (except AIDS-related)
- 6Mello-Roos special tax district disclosure required
- 7Buyer has 3 days to rescind after receiving late disclosures (5 days if mailed)
- 8"As-is" sales still require full disclosure
Timing Requirements
TDS and NHD must be delivered to buyer before contract acceptance. If delivered after offer acceptance, buyer has 3 days (5 if mailed) to terminate the offer. Third-party NHD reports typically cost $50-$150.
Penalties for Non-Disclosure
Under Civil Code 1102.13, willful or negligent failure to disclose results in liability for actual damages. Incomplete TDS typically limits damages to repair costs. Incomplete NHD could result in damages up to the entire property value. Agents face professional discipline and personal liability.
Exemptions from Disclosure
The following transaction types may be exempt from disclosure requirements:
Official California Resources
Last updated: January 27, 2025