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Buy & Sell FAQs · Disclosures

Disclosures, inspections and repairs.

What has to be disclosed, what inspections find, and how repair negotiations go.

What is a Transfer Disclosure Statement?

It is the statutory form on which a California seller discloses known material facts about a property's condition, systems, defects and legal issues for most sales of one to four residential units. The seller's sections are completed from the seller's actual knowledge rather than from an inspection; the form also carries the agents' own visual-inspection disclosures.

The form is a floor, not a ceiling. California's broader duty to disclose known material facts applies whether or not a specific box exists for the issue.

SourceCalifornia Civil Code 1102.6 · Transfer Disclosure Statement (opens in a new tab)

What is a Natural Hazard Disclosure report?

A statutory disclosure identifying whether a property sits in a mapped flood, fire or seismic hazard area, together with related state and local disclosures. Sellers commonly order it from a third-party report provider.

The report tells you a property is in a mapped zone. It does not tell you what insurance will cost, which is a separate question worth asking early.

SourceCalifornia Civil Code 1103.2 · Natural Hazard Disclosure (opens in a new tab)

What does a general home inspection cover, and what does it miss?

A general inspection is a visual, non-invasive review of accessible systems and components: roof, structure, exterior, plumbing, electrical, heating, cooling, insulation and interiors. It does not open walls, test for most environmental hazards, evaluate septic or wells, or certify code compliance.

Anything the general inspector flags for further evaluation is a prompt to bring in a specialist, not a conclusion that the issue is minor.

General informationNo single public source governs this. It depends on the property and the contract, and this page is general information, not advice for your situation. Confirm specifics with the appropriate professional.

Which specialty inspections are worth ordering?

It depends on the property. Common ones are roof, sewer lateral or septic, well yield and quality, chimney, pest and dry rot, foundation or structural engineering, drainage, pool, and electrical panel evaluation for older or recalled equipment.

For country property, septic and well testing usually matter as much as anything the general inspection will find.

SourceState Water Board · onsite wastewater (OWTS) program (opens in a new tab)

Who pays for repairs found during inspection?

Whoever negotiates for it. Inspection findings do not by themselves obligate a seller to repair anything in a standard California residential sale; the few fixed duties, such as smoke and carbon monoxide alarms and water heater bracing, come from statute rather than the inspection report. The realistic outcomes are a price reduction, a credit toward closing costs, a repair completed before closing, or no change at all.

Credits are often cleaner than repairs, because they let the buyer control the contractor, the scope and the timing.

SourceCalifornia Association of REALTORS (opens in a new tab)

Do I have to disclose a problem I already fixed?

Generally yes, if it was material. Disclose the condition, what was done about it, who did the work and whether it was permitted. A properly repaired and documented problem is far less alarming to a buyer than one they discover later and assume was concealed.

Keep receipts, permits and reports. Documentation is what turns a disclosure into reassurance.

SourceCalifornia Civil Code 1102.6 · Transfer Disclosure Statement (opens in a new tab)

What is a sewer lateral inspection?

A camera inspection of the private sewer line running from the house to the public main. It finds root intrusion, cracks, bellies and collapsed sections. Some jurisdictions require testing, repair or certification at the time of sale.

The lateral is usually the homeowner's responsibility all the way to the main, which surprises many buyers.

General informationNo single public source governs this. It depends on the property and the contract, and this page is general information, not advice for your situation. Confirm specifics with the appropriate professional.

How long does a buyer have to inspect in California?

The standard residential purchase agreement uses a default investigation period, commonly 17 days, but the number is negotiable and is frequently shortened in competitive situations. The clock starts from acceptance.

For rural property, choose the period based on how long the specialist testing actually takes rather than on convention.

SourceCalifornia Association of REALTORS (opens in a new tab)

Should the seller be present during the inspection?

Usually not. It constrains the buyer's conversation with their inspector and can turn a technical review into a negotiation. A better approach is for the seller to provide documentation in advance and answer written questions afterward.

Occupied properties with pets, tenants or restricted access need scheduling arranged well ahead.

General informationNo single public source governs this. It depends on the property and the contract, and this page is general information, not advice for your situation. Confirm specifics with the appropriate professional.

What environmental hazards should I ask about?

For older homes, lead-based paint and asbestos-containing materials. Depending on location and history, also radon, mold, underground storage tanks, agricultural chemical residue, and proximity to known contamination sites.

Federal law requires a lead-based paint disclosure and pamphlet for most homes built before 1978.

General informationNo single public source governs this. It depends on the property and the contract, and this page is general information, not advice for your situation. Confirm specifics with the appropriate professional.

What is a pest report and is it required?

It is a wood-destroying organism inspection covering termites, dry rot, fungus and conducive conditions. Findings are divided into Section 1, evidence of active infestation or infection, and Section 2, conditions likely to lead to it. It is not required by law in a standard California sale, but many lenders and buyers ask for it.

The division between the two sections is where most of the negotiation happens.

SourceCalifornia Structural Pest Control Board (opens in a new tab)

Can a buyer back out after inspections?

Yes, while the inspection contingency is in place and the cancellation is delivered properly and on time. Once contingencies are removed, cancelling generally puts the deposit at risk.

The contract governs. Timelines and notice requirements are strict and are not a formality.

SourceCalifornia Association of REALTORS (opens in a new tab)

What if a defect appears after closing?

The question becomes whether the seller knew and failed to disclose. Undisclosed known material defects can support a claim; genuinely unknown latent defects usually cannot. Evidence, timing and documentation determine which one it is.

This is a legal question. Talk to a real estate attorney rather than relying on general guidance.

SourceCalifornia Civil Code 1102.6 · Transfer Disclosure Statement (opens in a new tab)

Are inspection reports confidential?

They belong to whoever ordered them, but once a seller receives a report, the material facts in it become known facts that must be disclosed to future buyers if the transaction falls apart.

This is one reason a canceled escrow can change what a seller has to disclose going forward.

SourceCalifornia Civil Code 1102.6 · Transfer Disclosure Statement (opens in a new tab)

General answers about California and North Bay practice. Not legal, tax or insurance advice, and none of it describes a specific property. Rules change, so check anything that matters with the agency or professional named.

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