California requires detailed real estate disclosures, including the Transfer Disclosure Statement (TDS), Natural Hazard Disclosure (NHD), and local addenda. These forms ensure buyers understand a property’s condition and potential risks.
What Disclosures Are Required?
Buying or selling a home in California involves a detailed disclosure process designed to protect both parties. These forms outline the known condition of the property, potential hazards, and important neighborhood or legal factors that could affect value or safety.
Understanding what’s required helps prevent surprises later in escrow and ensures compliance with state law.
The Transfer Disclosure Statement (TDS)
The TDS is one of the most important documents in any California real estate transaction. It requires the seller to disclose everything they know about the property’s condition, what we call All Material Facts. This is anything you know about the property including:
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Structural issues or past repairs
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Water intrusion, roof, or foundation problems
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Appliances and systems included in the sale
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Any work done without permits
Even if a home is sold “as-is,” sellers are still legally required to disclose known defects.
The Natural Hazard Disclosure (NHD)
The NHD report is prepared by a third-party company and identifies whether the property lies in a designated hazard area, such as:
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Earthquake fault zones
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Flood zones
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Fire hazard severity zones
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Seismic or landslide areas
This report helps buyers understand environmental risks specific to the property’s location.
Local and Regional Addenda
Beyond state-mandated disclosures, local governments and real estate associations often require additional forms. For example:
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San Francisco’s Energy and Water Conservation ordinances
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Marin’s point-of-sale sewer lateral and Resale inspection requirements
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Local transfer taxes and earthquake retrofit forms
Your agent should guide you through each document, ensuring you understand what applies to your property.
Supplemental Disclosures
Other optional or situational disclosures may include:
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HOA documents and financial statements
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Lead-based paint disclosures (for homes built before 1978)
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Megan’s Law database notice
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Death on the property (if within three years)
These disclosures add context and transparency, allowing buyers to make informed decisions.
The Bottom Line
California’s disclosure system is one of the most comprehensive in the country. The key forms are the TDS, NHD, and relevant local addenda, but many transactions include several more depending on property type and location.
Having an experienced agent ensures every required form is completed correctly and that buyers fully understand what they are signing.
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Oliver Burgelman
Realtor® | Vanguard Properties
📍 San Francisco & Marin County
📞 415-244-5846
