US-CaliforniaDo I have to disclose property defects when selling my home in California?
Yes, California law requires sellers to disclose known material defects in writing using the Transfer Disclosure Statement (TDS) before selling residential property.
What the Law Says
California imposes strict disclosure duties on sellers of residential real property to protect buyers from hidden defects.
If you're selling a one- to four-unit residential property in California, you must complete and deliver a Transfer Disclosure Statement (TDS) to the buyer before accepting an offer. This applies to most sales — including those by owners, agents, or trustees — unless specifically exempted.
The TDS requires you to disclose all known material facts affecting the property's value or desirability — such as structural problems, water intrusion, pest damage, mold, unpermitted work, or neighborhood issues like flooding or landslides. You must answer each question honestly based on your actual knowledge, not what you 'should have known.'
Even if you believe a defect has been repaired, you must still disclose it — along with the nature and extent of the repair. The law does not require you to investigate or inspect the property; only to reveal what you actually know.
Statutory TextEvery transferor of any interest in residential real property... shall deliver to the transferee a completed real estate transfer disclosure statement...
— Civil Code § 1102 — Transfer Disclosure Statement
Statutory TextThe transferor shall disclose, to the best of his or her knowledge, all material facts relating to the physical condition of the property...
— Civil Code § 1102.1 — Definition of material facts
Statutory TextAny person who willfully or negligently violates this article shall be liable for actual damages sustained by the transferee...
— Civil Code § 1102.14 — Liability for violations
What Courts Have Said
California courts consistently hold sellers accountable for failing to disclose known defects — even if the buyer later discovers them during inspection.
Established that sellers have a duty to disclose known latent defects not discoverable by reasonable inspection.
Held that concealment or failure to disclose material facts violates the duty of good faith in real estate transactions.
What to Do
Complete the official Transfer Disclosure Statement (TDS) form truthfully — check 'yes' or 'no' to each item and add written explanations where needed.
Deliver the TDS to the buyer before accepting their offer — or as soon as practicable if no offer is yet received.
Keep a signed copy and proof of delivery (e.g., certified mail receipt or email confirmation).
Disclose newly discovered defects immediately — even after the TDS is delivered — via an amended disclosure.
Consult a real estate attorney if unsure about a defect’s materiality or your disclosure obligations.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.