HOME SELLER DISCLOSURES

The proper home seller disclosures must be provided to the seller in a timely manner. Failure to disclose specific environmental and geographical hazards, certain materials present in the home, and so on can derail a sale and lead to litigation down the road. Following are some of the required home seller disclosures:

Seller Property Disclosure

Transfer Disclosure Statement

Earthquake Disclosure and Receipts for Booklets

Lead Paint

The owner of any home built prior to 1978 has the following obligations:

  • Provide the buyer with the HUD pamphlet: “Protect Your Family From Lead in Your Home”
  • Provide the buyer a 10-day opportunity to test for lead

Natural Hazards

According to California law, you are required to provide, via a “Natural Hazard Disclosure Statement” or NHD, any evidence of:

  • Flood hazard zones designated by the Federal Emergency Management Agency (FEMA)
  • An area prone to flooding subsequent to a dam failure (also known as an inundation area)
  • A high fire hazard zone
  • A wildland fire area (also known as a “state fire responsibility area”)
  • Earthquake fault zones
  • Seismic hazard zones

Residential properties

Government booklets, handouts, and safety guides can be found at:

Home Energy Rating Guide

California Homeowner´s Guide to Earthquake Safety

Department of Health Services Residential Environmental Hazards

Lead in Your Home

Department of Health Services Mold FAQ

Mello-RoosTax Districts

A “Mello-Roos Community Facilities District” is formed by a local government, district, or agency in order to finance public services and facilities. These districts can include police and fire departments, ambulance and paramedic services, parks, schools, libraries, museums and cultural facilities.

If you are selling a home in a newer area (especially, but not necessarily exclusively), your home may be within one of the Mello-Roos tax districts, and you are required to provide to the buyer a “Notice of Special Tax.”

Condominiums etc.

If your home is a condominium, townhome or in another type of planned unit development, you will need to inform the buyer about additional items. These include such things as a homeowner’s association, common areas such as recreational areas, clubhouses and so on.

In these cases, the buyer may be required pay monthly dues or fees known as”regular assessments” to cover a portion of costs to maintain common areas. There will also be less frequent special assessments for things like roof repair or replacement, plumbing repairs, and so on as determined by the homeowner’s association (HOA.)

Regulations and limitations on things such as pets, age of residents, and architectural design or enhancements might also be mandated. The following documents, if they exist, must be provided to the buyer:

  • Declaration of Restrictions: Commonly known as “CC&Rs”, or Conditions, Covenants and Restrictions
  • Articles of Incorporation or Articles of Association Bylaws
  • Current financial information and related statements, including HOA reserves, estimated revenue and expenses, operating budget, regular and special assessments, and projected life expectancy of major components such as roofs, plumbing, etc.
  • Statement outlining the HOA’s policies and procedures with regard to enforcement of lien rights or other legal remedies for default in payment of its assessments
  • Summary of the HOA’s insurance policies, including property, general liability, and earthquake and flood insurance
  • Statement describing any HOA restrictions on the basis of age, such as authorized senior citizen housing

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