What Are California Sellers Required to Disclose Before Closing?
California has some of the most comprehensive seller disclosure requirements in the country. Before closing, sellers must complete the Transfer Disclosure Statement (TDS), the Seller Property Questionnaire (SPQ), and provide a Natural Hazard Disclosure (NHD) report. Missing or misrepresenting any of these gives buyers grounds to cancel, or, after closing, to sue. Here’s what each form covers and what actually needs to be disclosed.
By Austin Criss, REALTOR® | RE/MAX TIFFANY | June 17, 2026
I prepare every Cypress and Buena Park seller for the disclosure process before we list. The questions I get most often: “Do I have to disclose that?” and “What if I’m not sure?” The answers matter, California’s disclosure rules are serious, and the liability for getting them wrong follows you after closing.
The Transfer Disclosure Statement (TDS)
The TDS is required under California Civil Code Section 1102 for virtually all residential sales. It is the seller’s first-person account of the property’s physical condition based on their actual knowledge. You are not required to hire an inspector to complete the TDS, you are required to disclose what you know.
The TDS covers:
- Known defects in the structure, roof, plumbing, electrical, HVAC, and other systems
- Any deaths that occurred on the property within the last three years (regardless of cause, with one exception noted below)
- Neighborhood nuisances the seller is aware of, noise, odors, and similar conditions
- Presence of any controlled substances, lead paint, or hazardous materials known to the seller
- Any pending or active legal action affecting the property
The TDS is signed by the seller. Your listing agent also completes a separate section based on their visual inspection of the property. These are two distinct sections, the agent’s section does not substitute for yours.
The Seller Property Questionnaire (SPQ)
The SPQ (C.A.R. Form SPQ) covers the property’s history, what has happened there, not just what its current condition is. This is where sellers get tripped up most often.
The SPQ asks about:
- Repairs and remodeling, including work done without permits. Unpermitted additions, garage conversions, and room expansions must be disclosed. Buyers can verify permits through the city, and failure to disclose unpermitted work is one of the most common sources of post-closing disputes in OC.
- Insurance claims, any claims made on the property, including water damage, fire, and others
- HOA disputes or violations, any unresolved issues with the homeowners association
- Boundary disputes, any disagreements with neighbors about property lines
- Pest treatment history, prior termite treatment or other pest issues
If you had a roof repaired after a leak, disclose it. If your garage was converted without permits, disclose it. The SPQ is the place to document what has happened to the property during your ownership.
The Natural Hazard Disclosure (NHD) Report
The NHD is a third-party report identifying whether the property sits within any of six state-designated hazard zones:
- Special Flood Hazard Area
- Area of Potential Flooding (dam failure zones)
- High Fire Hazard Severity Zone
- State Responsibility Area (fire)
- Earthquake Fault Zone
- Seismic Hazard Zone (liquefaction and landslide)
The NHD is prepared by a third-party company, not the seller directly. Cost is typically $125 to $200. Most established neighborhoods in Cypress and Buena Park fall outside the major hazard zones, but the report is still required. Sellers typically order it when they list.
Other Required Disclosures
- Lead paint: federal law requires disclosure for homes built before 1978
- Smoke and carbon monoxide detectors: California requires working detectors; sellers must certify compliance
- Water heater strapping: required seismic safety measure in California
- HOA documents: if the property is in an HOA, sellers must provide the CC&Rs, bylaws, financial statements, and pending assessments. Buyers have a 3-day right of rescission after receiving HOA documents.
- Mello-Roos: if the property is in a Community Facilities District, the seller must disclose the annual special tax
Death Disclosure and the Three-Year Rule
Under Civil Code Section 1710.2, sellers must disclose any death on the property within three years before the sale, regardless of cause. Suicide, accident, homicide, natural causes, all must be disclosed within that window. After three years, sellers are not required to volunteer the information. But if a buyer asks directly, the seller must answer honestly. The only death a seller is never required to disclose is one related to HIV/AIDS.
Buyer’s Right to Cancel
California buyers have a five-day right of rescission from the date they receive the TDS and related disclosures. If new disclosures are delivered during escrow that materially affect the buyer’s decision, the clock resets. Sellers who provide disclosures late in escrow are extending the buyer’s cancellation window, another reason to prepare everything before you go to market.
Frequently Asked Questions
What is the Transfer Disclosure Statement in California?
The TDS (Civil Code Section 1102) is the seller’s first-person account of the property’s physical condition. It covers known defects, major system issues, deaths within three years, and neighborhood nuisances the seller is aware of. It is required for virtually all residential sales in California.
What does the Seller Property Questionnaire (SPQ) cover?
The SPQ covers the property’s history, repairs, remodeling (including unpermitted work), insurance claims, HOA disputes, boundary disputes, and pest treatment history. It goes beyond physical condition to document what has happened at the property during the seller’s ownership.
Do I have to disclose a death that occurred in my home?
Yes, if it occurred within three years before the sale, regardless of cause. After three years, you are not required to volunteer it, but you must answer honestly if a buyer asks. The only exception is death related to HIV/AIDS, which you are never required to disclose under California law.
What is a Natural Hazard Disclosure report in California?
The NHD is a required third-party report identifying whether the property falls within any of six state-designated hazard zones (flood, fire, earthquake, seismic, dam failure, state fire responsibility). It is ordered through a third-party company for $95 and is required before closing in all California residential sales.
What happens if a seller fails to disclose something in California?
Buyers have a five-day right of rescission from receipt of disclosures. If a seller knowingly withholds a material defect and the buyer discovers it after closing, the buyer may sue for damages or rescission. California courts take disclosure obligations seriously.
If you’re getting ready to list and want to talk through the disclosure process before you start, I’m happy to walk you through what to expect. Call or text me at 714.600.1176. Always Ask Austin.
About Austin Criss
Austin Criss is a REALTOR® with RE/MAX TIFFANY serving Cypress, Buena Park, and Orange County, California. He specializes in helping first-time buyers and move-up sellers navigate the process from first question to closing. Call or text him at 714.600.1176, or visit austincriss.com.