California has some of the strictest seller disclosure requirements in the country. If you're selling a home in the Inland Empire, you're legally required to tell buyers about virtually every known issue with your property — from a leaky faucet to past foundation work to whether your neighbor's rooster wakes you up at dawn.
This isn't just paperwork. Incomplete or inaccurate disclosures are one of the most common causes of post-sale lawsuits in California, and the consequences can be severe. A $500 repair you didn't disclose could turn into a $50,000 lawsuit years later.
Here's everything you need to know about California's disclosure laws as a seller in 2026 — what's required, what's changed, and how to protect yourself.
The Transfer Disclosure Statement (TDS)
The TDS is the cornerstone of California's seller disclosure requirements. Governed by Civil Code Section 1102, this form is required for virtually all residential sales of one-to-four unit properties. It's the document where you lay out everything you know about your home's condition.
The TDS covers an extensive range of topics:
- Structural components: Roof condition, foundation, walls, floors, windows, doors, and any known defects or past repairs
- Systems and appliances: Age and condition of plumbing, electrical, HVAC, water heater, and any appliances included in the sale
- Environmental hazards: Mold, asbestos, lead-based paint, radon, fuel or chemical storage tanks, contaminated soil or water
- Water and drainage: Any history of flooding, drainage problems, grading issues, or water intrusion
- Pest issues: Known infestations, past treatments, and any wood-destroying organism damage
- Neighborhood factors: Noise, odors, nuisances, or other conditions that could affect the property's desirability
- Deaths on property: Any deaths that occurred on the property within the last three years must be disclosed
The TDS must be completed in good faith — California Civil Code Section 1102.7 defines this as "honesty in fact in the conduct of the transaction." Your agent also completes a separate section based on their own visual inspection of the property.
Natural Hazard Disclosure Statement (NHD)
Under Civil Code Section 1103, sellers must disclose whether the property lies within mapped natural hazard zones. In the Inland Empire, this is particularly important given our proximity to earthquake faults, wildfire zones, and flood areas.
The NHD covers:
- Special Flood Hazard Areas (FEMA-designated zones)
- Dam inundation zones
- Very High Fire Hazard Severity Zones — particularly relevant for Claremont and Upland foothill properties
- Earthquake fault zones (Alquist-Priolo zones)
- Seismic hazard zones (liquefaction and landslide areas)
- Wildland-urban interface fire areas
Most sellers hire a third-party NHD company to prepare this report, which typically costs $100–$150. It's a small price for a document that provides significant legal protection.
Seller Property Questionnaire (SPQ)
The SPQ goes beyond the TDS to cover additional issues that buyers need to know about. While the TDS focuses on the physical condition of the home, the SPQ addresses broader concerns:
- Permits and renovations: Any remodeling, additions, or structural changes — and whether proper permits were obtained
- HOA and CC&R issues: Homeowner association rules, pending assessments, and any disputes with the HOA
- Neighbor disputes: Any ongoing or recent conflicts with neighbors
- Legal actions: Pending or threatened lawsuits related to the property
- Insurance claims: History of insurance claims filed for the property
- Shared features: Shared walls, fences, driveways, or other features with neighboring properties
Additional Required Disclosures
Beyond the TDS, NHD, and SPQ, California sellers must provide several additional disclosures depending on the property:
Lead-Based Paint Disclosure (Pre-1978 Homes)
Federal law requires sellers of homes built before 1978 to disclose known lead-based paint hazards, provide the EPA's "Protect Your Family From Lead in Your Home" pamphlet, and give buyers a 10-day period to conduct a lead-based paint inspection. Many older homes in Claremont and Upland fall into this category.
Mello-Roos and Special Assessments
If your property is subject to Mello-Roos Community Facilities District taxes or other special assessments, you must disclose these to the buyer. Many newer developments in North Fontana (92336) and parts of Rancho Cucamonga carry Mello-Roos taxes that can add $2,000–$5,000 or more to the annual tax bill.
Supplemental Tax Bill Disclosure
Sellers must inform buyers that a supplemental property tax bill may be issued after the sale, based on the reassessed value of the property. For homes that have appreciated significantly under Prop 13, this can be a substantial surprise for buyers if they're not prepared.
Smoke and Carbon Monoxide Detectors
California law requires that all homes sold have functioning smoke detectors installed in compliance with state building codes, and carbon monoxide detectors on every floor with a bedroom. Sellers must provide a written statement confirming compliance.
Water Heater and Seismic Safety
Sellers must certify that the water heater is braced, anchored, or strapped in compliance with applicable law. This is a seismic safety requirement specific to California.
What 'As-Is' Actually Means in California
Here's one of the most common misconceptions in California real estate: selling "as-is" does not exempt you from disclosure requirements. California Civil Code Section 1102.1 is explicit — the delivery of a Transfer Disclosure Statement cannot be waived in an as-is sale.
Selling as-is means the buyer accepts the property in its current physical condition. It does not mean you can hide known problems. If you know about a roof leak, a cracked foundation, or past flooding, you must disclose it regardless of whether the sale is as-is.
The Cost of Not Disclosing
Non-disclosure litigation in California is expensive for everyone involved — but especially for sellers. Here's what you're risking:
- Repair costs: The buyer can sue for the cost of repairing any undisclosed defects
- Price reduction: The buyer may seek the difference between what they paid and what the home is worth with the defect
- Punitive damages: If intentional fraud is proven, courts can award punitive damages beyond actual repair costs
- Legal fees: Attorney fees and litigation costs that frequently exceed the value of the underlying defect
- Rescission: In extreme cases, the buyer may unwind the entire transaction
California's statute of limitations for disclosure claims can extend years after the sale. The $500 repair you hoped no one would notice can become a $50,000 lawsuit when the problem worsens and the buyer discovers you knew about it.
Agent Responsibilities
You're not alone in the disclosure process — and that's important. California law requires both listing agents and buyer's agents to complete their own sections of the TDS based on a visual inspection of the property. Under Civil Code Section 2079, your agent must conduct a reasonably competent and diligent inspection and disclose all material facts that the inspection would reveal.
An agent who walks past obvious water damage without noting it on disclosures shares liability with the seller. This shared responsibility is one of the key reasons why working with an experienced local agent matters — they know what to look for and how to document it properly.
Recent Changes: What's New for 2026
California continues to expand disclosure requirements. Recent legislation has focused on two key areas:
Renovated and Flipped Properties
Under AB 968, the legislature expanded disclosure obligations for sellers who renovated properties before reselling them. If you purchased your home, made significant improvements, and are now selling, you face additional scrutiny around permits, contractor licensing, and the quality of work performed. This particularly affects investors and homeowners who've done major remodels.
Insurance Disclosure
With wildfire risk increasingly affecting Inland Empire foothill communities like Claremont and Upland, disclosure requirements around insurance availability and costs have become more prominent. Sellers should be transparent about their insurance history, any non-renewals, and whether they've been pushed to the California FAIR Plan.
How to Protect Yourself as a Seller
The best defense against disclosure liability is thorough, proactive disclosure. Here's what experienced agents recommend:
Disclose more than you think necessary. When in doubt, disclose it. Over-disclosure protects you far more than under-disclosure. A buyer who knows about a minor issue upfront cannot sue you for it later.
Keep meticulous records. Maintain copies of all inspection reports, repair receipts, warranties, contractor invoices, and communications. These documents are your evidence if a dispute arises.
Consider a pre-listing inspection. Paying $400–$600 for a professional home inspection before you list gives you a complete picture of your home's condition. You can address issues proactively, disclose them transparently, and avoid surprises during the buyer's inspection that could derail your sale.
Update disclosures if conditions change. If something happens between listing and closing — a pipe leaks, a tree falls, you discover a new issue — update your disclosures immediately. The obligation is ongoing throughout the transaction.
Work with an agent who knows disclosure requirements. An experienced local agent guides you through every form, helps you identify issues you might overlook, and ensures everything is completed correctly and delivered on time.
The Bottom Line
California's disclosure laws exist to protect both buyers and sellers. As a seller, your job is simple in concept but demanding in execution: tell the truth, tell it early, and tell it completely. The homes that close smoothly and stay closed are the ones where the seller was transparent from day one.
A good agent doesn't just help you market your home — they help you navigate the complex legal requirements of a California real estate transaction. That's one of the most valuable parts of full-service representation, and it's something you should never sacrifice to save a few dollars on commission.
JP Dauber is a licensed California broker (DRE #01499918) with 21+ years of experience guiding Inland Empire sellers through California's complex disclosure requirements. SoldByJP provides full-service home selling at 1% commission in Rancho Cucamonga, North Fontana, Upland, and Claremont. Get your free home valuation →