Ca Disclosures

California Disclosures — Practice of Real Estate ## The Disclosure Framework California mandates more seller disclosures than any other state. The framework has four levels: (1) federal requirements, (2) state statutes, (3) local ordinances, and (4) fiduciary duties. A California licensee who understands all four levels can guide clients through the disclosure process confidently. --- ## Transfer Disclosure Statement (TDS) — Civil Code §1102 The TDS is mandatory for the sale of 1-4 residential units. It cannot be waived by the parties. Exceptions are narrow: foreclosure sales by institutional lenders, probate/guardianship sales, transfers between spouses, and transfers to/from government entities. Three sections: 1. Seller's own disclosure of known conditions (roof, foundation, water heater, plumbing, electrical, HOA, permits, nuisances, etc.) 2. Listing agent's AVID (Agent Visual Inspection Disclosure) — results of the agent's reasonably competent visual walkthrough 3. Buyer's agent AVID — same independent inspection by buyer's agent Delivery: As soon as practicable before transfer. Buyer has 3 days (personal delivery) / 5 days (mailed) to rescind. Amended TDS upon discovery of new defects restarts the rescission period. --- ## Natural Hazard Disclosure (NHD) — Civil Code §1103 Discloses whether the property is in any of six state-designated hazard zones: 1. Special Flood Hazard Area (FEMA) 2. Area of Potential Flooding (dam inundation) 3. Very High Fire Hazard Severity Zone 4. State Responsibility Area (wildland fire) 5. Earthquake Fault Zone (Alquist-Priolo) 6. Seismic Hazard Zone (liquefaction/landslide) Typically prepared by a third-party NHD disclosure company. Buyer has same 3/5 day rescission right. --- ## Lead-Based Paint — Federal Law Required for all homes built before 1978: - Seller disclosure of any known lead-based paint hazards - Delivery of EPA pamphlet "Protect…