What Do You Have to Disclose When Selling a Home in California? A Guide for Los Angeles Homeowners

When homeowners start thinking about selling, much of the attention naturally goes to preparing the house, choosing a listing price, taking photographs, and getting the property on the market. There is another part of the process that may not be as exciting, but it is extremely important: disclosures.

California has extensive disclosure requirements for residential real estate transactions. Sellers may be asked to provide information about the property, its condition, known defects, improvements, hazards, and other circumstances that could affect a buyer’s decision.

For a homeowner who has lived in the same property for many years, completing disclosures can sometimes feel overwhelming. You may know a great deal about your home, but you may not immediately remember every repair, leak, improvement, insurance claim, or issue that has occurred over the years.

Understanding the purpose of disclosures before you sell can make this part of the process much easier.

What Is the Purpose of Seller Disclosures?

The basic idea behind disclosures is transparency.

A buyer is making a significant financial decision and needs information about the property to evaluate that decision. Some things are easy for a buyer to see during a showing. Other things may not be visible at all.

A buyer walking through a beautifully presented home, for example, may have no way of knowing about a previous roof leak, drainage problem, unpermitted alteration, or other issue unless that information is disclosed.

California residential transactions can involve several disclosure documents depending on the property and circumstances. One of the best known is the Transfer Disclosure Statement, commonly referred to as the TDS.

The TDS asks sellers questions about the property and about conditions or issues they are aware of.

What Types of Things Might a Seller Need to Disclose?

The exact disclosures required depend on the property and transaction, which is why sellers should receive guidance specific to their situation.

Generally, disclosures can involve information about the physical condition of the property and known issues that may affect its value or desirability.

Examples can include previous water intrusion, roof problems, structural modifications, drainage or grading concerns, environmental hazards, certain neighborhood nuisances, additions or alterations completed without required permits, and damage associated with events such as fires, floods, earthquakes, or landslides.

There may also be additional disclosure requirements depending on factors such as the property’s location, age, ownership structure, and circumstances of the sale.

The important point for sellers is not to try to memorize every possible disclosure before listing their home. It is to understand that disclosure is a meaningful part of the transaction and deserves careful attention.

What If an Issue Was Repaired Years Ago?

This is a question homeowners may naturally have.

If something happened in the past and was repaired, it can be tempting to assume that it no longer matters because the problem has been resolved.

However, a previous condition may still be relevant to the disclosure process.

For example, if there was water intrusion several years ago and the source was repaired, the history of that issue may still be information that should be addressed in the appropriate disclosure documents.

Rather than deciding on your own that an old problem is no longer important, discuss it with your real estate professional and, when appropriate, obtain legal or other professional advice.

Being transparent about a past issue does not automatically make a property undesirable. Homes require maintenance and repairs. Buyers generally understand that.

Problems are more likely to arise when important information is discovered later and the buyer believes it should have been disclosed earlier.

What About Improvements and Permits?

Many Los Angeles homes have been remodeled, expanded, or changed over time.

A homeowner may have replaced windows, remodeled a kitchen, added a bathroom, converted space, built a deck, changed electrical systems, or completed other improvements.

If you are preparing to sell, it can be useful to start gathering whatever records you have relating to significant work on the property.

Depending on the circumstances, questions about permits, structural modifications, alterations, or repairs may become part of the disclosure process.

If you do not know whether previous work was permitted, particularly work completed before you owned the property, do not guess. Explain what you actually know and seek appropriate guidance about how the information should be handled.

What If You Truly Do Not Know?

Sellers are not expected to magically know everything that has ever happened to a property.

There is an important difference between something you genuinely do not know and something you know but choose not to disclose.

When completing disclosures, sellers should answer carefully based on their actual knowledge rather than making assumptions.

This is another reason I would not recommend rushing through disclosure documents. Read the questions carefully, think about your history with the property, and ask questions when you do not understand what a form is asking.

Preparing Before Your Home Goes on the Market

If you are considering selling, you can make the disclosure process easier by gathering information about your home before you need it.

Look for invoices from major repairs, permits you may have retained, warranties, information about improvements, insurance related records that may be relevant, and documents associated with systems such as the roof, plumbing, electrical, HVAC, or solar.

You do not need to create a perfect history of your house. Many homeowners simply do not have every document from every repair.

The goal is to begin organizing what you do have and thinking carefully about what you know about the property.

This can also help you identify questions that should be addressed before the home is actively marketed.

Why Transparency Can Help a Transaction

Sellers sometimes worry that disclosing a problem will discourage a buyer.

That concern is understandable, but buyers also appreciate having information that helps them make an informed decision.

A home does not need to be perfect to sell. In Los Angeles, buyers purchase homes of different ages and conditions every day.

Providing information early can allow buyers to evaluate the property, conduct their inspections, ask questions, and decide whether the home is right for them.

It can also reduce the possibility of a buyer learning something later in the transaction that comes as a surprise.

Disclosures Are One Part of Preparing to Sell

When I think about preparing a home for the market, I do not think only about photographs, staging, price, and marketing.

I also think about the information behind the property.

What has happened to the home over the years? What improvements have been made? Are there documents that should be located? Are there questions that should be answered before buyers begin looking at the property?

Addressing these things early can make the selling process more organized and help sellers understand what to expect before an offer arrives.

If you are considering selling a home in Pacific Palisades, Santa Monica, or elsewhere on the Westside of Los Angeles, I would be happy to help you look at the steps involved in preparing your property for the market, including the disclosure process and the information you may want to begin gathering.

Every property has its own history. Understanding that history and presenting it thoughtfully is an important part of preparing for a successful sale.

Claudia Backus, MBA
California Real Estate Broker | REALTOR®
Serving Pacific Palisades & the Westside of Los Angeles