California Seller Disclosure Requirements: Complete 2026 Guide

Seller disclosures are your legal obligation to inform buyers of known property issues before they complete a purchase. California Civil Code § 1102 mandates that sellers of residential property (1-4 units) provide written disclosure of material facts affecting the property's value or desirability.

The Transfer Disclosure Statement requires sellers to reveal conditions affecting value or desirability. This includes physical defects like foundation cracks, roof leaks, or plumbing problems. It also covers environmental hazards such as lead paint, asbestos, or mold. Legal issues like easements, boundary disputes, and unpermitted additions must be disclosed. Even neighborhood factors—a barking dog next door, a planned development nearby, or known criminal activity—can constitute material facts requiring disclosure.

California's disclosure requirements protect both buyers and sellers. Buyers receive information they need to make informed purchasing decisions. Sellers who disclose properly gain protection from future lawsuits claiming they concealed defects. When disputes arise years after closing, complete disclosure documentation becomes your best defense.

The standard California uses is what you "know or should know." You cannot claim ignorance of obvious conditions. If water stains mark your ceiling, you're expected to know about potential roof or plumbing issues. If your foundation has visible cracks, claiming you never noticed won't shield you from liability.

California requires multiple disclosure documents in residential real estate transactions. Understanding each form's purpose helps you provide complete, accurate disclosures.

Transfer Disclosure Statement (TDS)

The Transfer Disclosure Statement is California's primary disclosure form. The TDS derives its legal authority from California Civil Code § 1102 and requires completion by sellers of 1-4 unit residential properties.

The seller completes Section I, disclosing known conditions throughout the property. This covers structural components, plumbing, electrical, heating and cooling systems, appliances included in the sale, and environmental hazards. You must indicate whether each system or component is operational and note any defects or malfunctions.

Section II requires you to answer specific questions about property conditions: Are you aware of any room additions, structural modifications, or repairs made without permits? Have there been any insurance claims? Are there any neighborhood nuisances, easements, or encroachments? The form contains dozens of specific questions designed to uncover material facts.

After you complete your portions, your listing agent adds their observations in Section III, and the buyer's agent adds their observations in Section IV. This multi-party disclosure creates a comprehensive record of known conditions at the time of sale.

Exemption from TDS requirement exists for certain transactions including court-ordered sales, foreclosure sales, and transfers between co-owners. However, even exempt transactions may require other disclosures.

Natural Hazard Disclosure (NHD) Report

California requires disclosure of whether property lies within designated natural hazard zones. The Natural Hazard Disclosure report identifies flood zones, earthquake fault zones, seismic hazard zones, fire hazard severity zones, and areas of potential flooding from dam failure.

Most sellers order NHD reports from third-party disclosure companies that research official maps and databases. Companies like JCP-LGS, First American, and Disclosure Source provide reports typically costing $75-150. The NHD company assumes liability for accuracy, protecting sellers who rely on their reports.

In Yuba County and Sutter County, flood zone disclosure is particularly important. Properties near the Feather River, in Linda, or in Olivehurst may fall within FEMA Special Flood Hazard Areas requiring flood insurance. The Marysville Levees provide flood protection but properties within protected areas still require disclosure of their flood zone status.

Supplemental Disclosures

Beyond TDS and NHD, California requires additional disclosures for specific situations:

Lead-Based Paint Disclosure: Federal law requires disclosure of known lead-based paint hazards in homes built before 1978. Sellers must provide buyers with an EPA pamphlet about lead hazards and allow 10 days for lead inspection.

Mello-Roos and Special Tax Districts: Properties within Community Facilities Districts or other special tax areas require disclosure of the additional tax obligations. Many newer developments in the Yuba-Sutter area carry Mello-Roos bonds that add $1,500-4,000+ annually to property tax bills.

HOA Disclosures: Condominium and planned development sales require extensive HOA documentation including CC&Rs, bylaws, financial statements, meeting minutes, and any pending special assessments. Sellers must provide these documents within specific timeframes.

Smoke and Carbon Monoxide Detector Compliance: California law requires sellers to provide a written statement that the property has operable smoke detectors and carbon monoxide detectors installed in required locations.

California law requires disclosure of known material facts across multiple categories. Understanding what falls within each category helps ensure complete disclosure.

Structural and Physical Conditions

Foundation problems require disclosure including cracks, settlement, water intrusion, and any repairs performed. In Yuba-Sutter, soil conditions and seasonal flooding contribute to foundation issues in many older homes. Even repaired foundation problems must be disclosed—the repair itself is a material fact indicating past issues.

Roof condition and age must be disclosed. Note any leaks, repairs, or patches. If you know the roof's age or installation date, include this information. Water stains on ceilings suggest roof or plumbing problems and require disclosure even if you haven't identified the specific source.

Plumbing and sewer issues include slow drains, leaks, past blockages, and sewer line condition. Properties on septic systems rather than municipal sewer—common in rural Yuba County—require disclosure of the septic system's age, condition, and maintenance history. Disclose any septic inspections, pumping records, or known problems.

Electrical system conditions must be disclosed including panel age, capacity, known problems with outlets or circuits, and any electrical work performed. Older homes in Marysville and Yuba City may have outdated electrical panels (Federal Pacific, Zinsco) that insurance companies refuse to cover.

HVAC system disclosures cover heating and air conditioning age, condition, and maintenance history. Note whether systems are original to the home, have been replaced, or have known issues with performance or efficiency.

Water damage history must be disclosed regardless of whether damage was repaired. Past flooding, roof leaks, plumbing failures, or other water intrusion events remain material facts even after remediation. Disclose the date, cause, and extent of damage along with repairs performed.

Environmental and Health Hazards

Lead-based paint disclosure is mandatory for homes built before 1978. While federal law doesn't require testing, you must disclose any known lead-based paint or lead hazards. If you've had testing performed, provide those results.

Asbestos presence must be disclosed if known. Homes built before 1980 may contain asbestos in insulation, flooring, ceiling tiles, or siding. Disclose any testing, abatement, or encapsulation performed.

Mold presence or history requires disclosure. If you've had mold growth, disclose the location, cause, and remediation performed. Even if professionally remediated, the history remains a material fact. Recurring moisture problems that could lead to mold growth should also be disclosed.

Well water quality affects many rural Yuba County properties. If your home uses well water, disclose any testing results for contaminants, bacteria, nitrates, or other issues. Properties with known well water quality problems require disclosure even if filtration systems are installed.

Pest and termite issues require disclosure of any infestation history, damage, and treatment. California uses Section 1 (active infestation or damage requiring correction) and Section 2 (conditions likely to lead to infestation) classifications in termite reports. Disclose any termite reports obtained and work performed.

Legal and Title Issues

Easements affecting the property must be disclosed. Utility easements, access easements, and drainage easements can limit how buyers use portions of the property. Disclose any recorded easements and point buyers to title documents.

Boundary disputes or encroachments require disclosure whether the dispute involves your property encroaching on neighbors or vice versa. Disclose any known fencing disputes, shared driveways, or structures crossing property lines.

Unpermitted work is a significant disclosure issue in Yuba-Sutter. Room additions, garage conversions, covered patios, and other improvements built without permits must be disclosed. Buyers and their lenders will discover permit history through county records, making concealment both futile and legally risky.

Code violations and open permits require disclosure. If you've received notices from code enforcement or have building permits that were never finaled, these constitute material facts affecting the property.

Pending litigation involving the property must be disclosed, whether you're the plaintiff or defendant. This includes neighbor disputes, contractor claims, or any legal action that could affect title or use of the property.

Deaths and Stigmatized Property Issues

Deaths on the property within the past three years must be disclosed under California Civil Code § 1710.2. This includes natural deaths, accidents, suicides, and homicides occurring on the property.

Deaths older than three years do not require proactive disclosure. However, if a buyer asks directly whether deaths occurred on the property, you cannot lie. The safest approach when asked is truthful response regardless of timing.

AIDS-related deaths receive specific protection under California law. Sellers cannot be required to disclose that a prior occupant had AIDS or died from AIDS-related causes, regardless of when the death occurred.

Other stigmatizing factors like alleged hauntings, prior criminal activity, or notorious events do not require disclosure under California law unless they resulted in physical property damage. However, if a buyer asks directly about specific stigmas, providing false information creates liability.

Properties in Yuba County and Sutter County face unique disclosure situations based on local geography, infrastructure, and land use patterns.

Flood Zone and Levee Disclosures

The Feather River and its tributaries create significant flood risk throughout Yuba-Sutter. Properties in Linda and Olivehurst sit within areas protected by the Marysville Levees and Reclamation District 784 infrastructure. While levees provide protection, properties behind levees still fall within FEMA Special Flood Hazard Areas requiring disclosure.

The 1997 levee break that flooded Linda remains within living memory for many Yuba County residents. Properties that flooded during that event or subsequent flooding should disclose their flood history. Even if damage was repaired decades ago, past flooding constitutes a material fact affecting property value and insurability.

Natural Hazard Disclosure reports identify flood zone designations, but sellers with actual knowledge of flooding—whether from the 1997 event, subsequent storms, or other sources—should supplement NHD reports with their personal knowledge. Stating "property flooded in 1997" provides more useful information than simply noting the flood zone designation.

Properties near the Feather River, Yuba River, or Bear River require careful attention to flood-related disclosures. Even properties outside designated flood zones may have flooding history that requires disclosure.

Right-to-Farm Disclosures

Yuba County's agricultural character triggers Right-to-Farm disclosure requirements for residential properties near farming operations. California Civil Code § 1103.4 requires disclosure when property lies within one mile of designated farmland.

Agricultural operations generate noise, dust, odors, and activity that urban buyers may find objectionable. Rice farming in the Yuba-Sutter basin involves crop dusting, field burning (where permitted), and seasonal flooding that create impacts extending well beyond farm boundaries.

Properties adjacent to orchards may experience pesticide application. Properties near livestock operations encounter odors. The Sutter Buttes area and rural Yuba County include extensive agricultural operations whose impacts affect neighboring residential properties.

Right-to-Farm disclosure protects agricultural operations from nuisance lawsuits by ensuring buyers understand they're purchasing near active farms. Sellers must disclose this proximity and the potential for agricultural impacts even if the seller personally finds farm activities unobjectionable.

Well and Septic System Disclosures

Rural Yuba County properties frequently rely on private wells and septic systems rather than municipal water and sewer. These systems require specific disclosures beyond standard TDS questions.

Well disclosures should cover water quality testing history, any contamination issues, well depth and age if known, and water production capacity. Properties in areas with known groundwater contamination—including some agricultural areas with nitrate issues—require disclosure of testing results and any treatment systems installed.

Septic system disclosures include system type, approximate age, pumping and maintenance history, and any known problems. Properties with failing septic systems or systems requiring upgrade face significant costs that buyers must understand before purchasing.

The Yuba County Environmental Health Department maintains septic system records and may require inspection before property transfer in some circumstances. Sellers should disclose any environmental health department involvement with their septic system.

Military Airport and Noise Disclosures

Properties within certain distances of Beale Air Force Base require military airport disclosure. Beale's operations include reconnaissance aircraft and training flights that generate noise affecting properties throughout northern Yuba County.

California requires disclosure of proximity to military installations that could affect property use or value. This applies to properties in Wheatland, Linda, Olivehurst, and surrounding areas that fall within Beale's operational influence.

Some properties may also fall within Airport Land Use Compatibility Plans that restrict development. These restrictions constitute material facts requiring disclosure even if they don't currently limit property use.

California law specifies when sellers must provide disclosures and what happens when disclosures reveal new information to buyers.

Northern California Practice: Upfront Disclosures

In Yuba County, Sutter County, and throughout Northern California, the standard practice is providing disclosures before buyers submit offers. This differs from Southern California where disclosures often come after offer acceptance.

Upfront disclosure benefits sellers by attracting serious buyers who've already reviewed property conditions. Buyers who submit offers after seeing disclosures are less likely to renegotiate or cancel based on disclosed conditions. The transaction proceeds more smoothly when everyone starts with the same information.

Prepare your disclosure package before listing or marketing your property. This includes completing the Transfer Disclosure Statement, ordering your Natural Hazard Disclosure report, gathering any supplemental disclosures required for your property type, and assembling documentation for known issues you're disclosing.

Buyer's Right to Cancel After Receiving Disclosures

When buyers receive disclosures after entering a purchase contract, California Civil Code § 1102.3 grants them cancellation rights. For disclosures delivered in person, buyers have three days to cancel. For disclosures delivered by mail, buyers have five days.

This cancellation right applies only to disclosures received after contract execution. When you provide disclosures upfront—before the buyer submits an offer—no post-contract cancellation period applies because the buyer already had the information when making their offer.

If you discover new information after providing initial disclosures, you must provide amended disclosures. The buyer then receives a new cancellation period based on the amended information. This is why thorough initial disclosure matters—incomplete disclosures that require amendment create additional cancellation opportunities.

What Happens If Issues Are Discovered During Escrow

Buyers typically conduct inspections during escrow that may reveal conditions unknown to the seller. When inspections discover issues you genuinely didn't know about, you're not liable for failing to disclose them. Your obligation covers known conditions, not conditions you couldn't reasonably have known.

However, inspection findings may prompt questions about what you did know. If a foundation inspection reveals extensive cracking and the buyer asks whether you noticed cracks, truthful response is required. Claiming ignorance of obvious conditions creates liability.

When new issues surface during escrow in Yuba County transactions, local escrow officers typically facilitate negotiation between parties. Options include price reduction, seller repairs, seller credits for buyer repairs, or contract cancellation if parties can't agree. Cash buyers experienced with property conditions often proceed without demanding repairs, simplifying these negotiations.

Failing to disclose known material facts exposes sellers to significant legal liability that persists long after closing. Understanding these consequences motivates thorough disclosure.

Buyer Remedies for Non-Disclosure

Buyers who discover undisclosed conditions have several legal remedies against sellers:

Contract rescission allows buyers to unwind the transaction entirely. The seller must return the purchase price plus the buyer's transaction costs, inspection fees, and other expenses. Rescission is available when non-disclosure is material enough that the buyer wouldn't have purchased knowing the true conditions.

Damages compensate buyers for repair costs, diminished value, and consequential losses caused by undisclosed conditions. If an undisclosed foundation problem costs $40,000 to repair, the buyer can sue to recover those costs from the seller.

Fraud claims arise when sellers intentionally conceal known defects. Fraud allows recovery of punitive damages beyond actual losses, potentially tripling or quadrupling the buyer's recovery. The distinction between negligent non-disclosure and intentional fraud significantly affects potential liability.

Statute of Limitations and Long-Tail Liability

California's statute of limitations for disclosure claims doesn't begin until the buyer discovers or reasonably should have discovered the undisclosed condition. For latent defects—problems not obvious from casual observation—this discovery rule extends potential liability for years after closing.

A foundation problem concealed during sale might not manifest until five years later when cracks appear. The buyer's lawsuit clock starts at discovery, not at closing. Sellers have faced disclosure lawsuits a decade after selling when problems finally surfaced.

This long-tail liability makes thorough disclosure essential. The $500 repair you didn't want to disclose could become a $50,000 lawsuit years later when the problem worsens and the buyer discovers you knew about it all along.

Typical Disclosure Lawsuit Costs in California

Non-disclosure litigation is expensive for all parties. Sellers face both repair costs and legal fees that often exceed the underlying defect's value.

Real Estate Agent and Broker Liability

When agents fail to disclose conditions they observed or should have observed, they share liability with sellers. This is why California requires both listing agents and buyer's agents to complete disclosure sections on the TDS.

Agents conduct visual inspections and must disclose red flags they notice. An agent who walks past obvious water damage without noting it on disclosures faces liability alongside the seller. This shared responsibility motivates thorough agent inspections that may reveal conditions sellers hoped to minimize.

Sellers cannot rely on agents to "handle" disclosure decisions. The seller's obligation to disclose known conditions is independent of agent observations. Both parties bear responsibility for their respective knowledge.

Selling to a cash buyer doesn't eliminate disclosure obligations, but it does change how disclosures affect your transaction. Experienced cash buyers approach disclosures differently than traditional retail buyers.

Why Disclosure Still Matters in Cash Transactions

California disclosure requirements apply to all residential property sales regardless of financing. Whether your buyer pays cash, uses a mortgage, or assumes existing financing, your disclosure obligations remain identical under Civil Code § 1102.

The difference lies in how cash buyers respond to disclosures. Traditional buyers often use disclosed conditions as negotiating leverage, requesting repairs or credits after reviewing your disclosures. Cash buyers typically factor disclosed conditions into their initial offer, eliminating back-and-forth negotiation.

Cash buyers purchasing properties as investments expect deferred maintenance, needed repairs, and property issues. Disclosures that would scare away traditional buyers simply confirm what experienced investors already anticipated when evaluating the property.

How Cash Buyers Evaluate Disclosed Conditions

Professional cash buyers like Yuba Home Buyer calculate offers using the After Repair Value (ARV) methodology. We estimate what the property will be worth after repairs, subtract renovation costs and our margin, and arrive at a cash offer price.

Your disclosures help us refine our repair estimates. When you disclose foundation issues, we factor foundation repair costs into our calculations. When you disclose an aging roof, we include roof replacement in our projections. Thorough disclosure leads to accurate offers rather than surprises during escrow.

This approach means disclosed conditions don't derail cash transactions the way they might with traditional buyers. We're not shocked by your disclosures—we expected property issues when we evaluated the opportunity. Our offer already accounts for the conditions you're disclosing.

Simplified Disclosure Process with Experienced Buyers

When you sell to Yuba Home Buyer, we guide you through disclosure requirements without the pressure of retail buyer expectations. Our experience with Yuba-Sutter properties means we understand local disclosure issues—flood zones, septic systems, agricultural proximity, older home conditions—before you mention them.

You still complete required disclosure forms. California law doesn't provide shortcuts based on buyer sophistication. However, you complete disclosures knowing the buyer already understands property conditions and won't use disclosures to renegotiate or cancel.

For sellers concerned about disclosure liability, cash sales offer particular peace of mind. You provide complete disclosures, we acknowledge receiving them, and the transaction closes without disclosure disputes. Our familiarity with property conditions in the Yuba-Sutter market means fewer surprises for everyone.

Executor and Probate Disclosure Considerations

Executors selling inherited property face unique disclosure challenges. You may not know the property's history, past repairs, or existing conditions. California law requires disclosure of known conditions—but what does an executor actually know about a deceased relative's property?

Executors should disclose what they've learned during estate administration: conditions observed during property visits, information from neighbors or family members, documentation found in the deceased's records. You're not expected to have the same knowledge as someone who lived in the property for decades.

Cash buyers experienced with probate sales understand executor limitations. We don't expect executors to know whether the roof was replaced in 2008 or whether the water heater ever leaked. We conduct our own inspections and accept properties based on current conditions rather than demanding historical knowledge executors don't possess.

Related guides: Selling an Inherited House in Yuba-Sutter and Selling Your House As-Is.

Whether your property needs extensive repairs, sits in a flood zone, or comes with disclosure concerns that worry traditional buyers, Yuba Home Buyer purchases homes throughout Yuba County and Sutter County in any condition.

We've handled 50+ transactions since 2012, including properties with foundation problems, unpermitted additions, deferred maintenance, and complex disclosure situations. Our experience means your disclosures don't surprise us—they help us make fair, accurate offers you can count on.

Skip the uncertainty of traditional sales where disclosed conditions trigger negotiations, repair demands, or cancelled contracts. With Yuba Home Buyer, you receive a straightforward cash offer, close on your timeline, and move forward without disclosure disputes.