California law requires property sellers to disclose certain information to potential buyers. These disclosures help buyers make informed decisions and protect them from unexpected issues after purchasing a property.
However, sellers often face challenges in understanding what they must disclose. Failing to provide accurate and complete information can lead to serious legal consequences. Understanding common pitfalls in California real estate disclosures can help sellers avoid these risks.
Disclose all known defects
Sellers must reveal known issues, such as structural damage, roof leaks or mold problems, during a real estate transaction. Even if the seller has repaired the issue, the law requires them to disclose the past defect. Failure to disclose such issues may lead to legal disputes, financial penalties and a damaged reputation.
Discuss neighborhood conditions
Sellers should also provide information about neighborhood conditions that could affect the property’s value or desirability. This includes nuisances such as loud noise, unpleasant odors or ongoing construction nearby. California law mandates that sellers disclose these conditions if they are aware of them. Neglecting to do so can result in the buyer seeking remedies after the sale.
Note any environmental hazards
In California, common environmental hazards can include exposure to asbestos, lead-based paint or toxic mold. Sellers must complete the required forms, like the Natural Hazard Disclosure Statement, and provide them to the buyer. Overlooking this step could lead to serious consequences if the buyer discovers the hazard later.
Be careful about selling “as-is”
Sellers sometimes mistakenly believe that selling a property “as-is” eliminates their disclosure responsibilities. Even in an as-is sale, California law requires sellers to disclose all known material facts. The as-is condition only means the seller will not make repairs; it does not relieve them from disclosing known issues.
Following California’s real estate disclosure requirements ensures that sellers can avoid common pitfalls and ensure a smoother transaction. Providing complete and accurate information protects both parties and fosters trust throughout the sale process.
