California Seller Disclosures 2026: TDS, SPQ, NHD & What You Must Tell Buyers

By Ramez Malki, Broker — C&R Properties  |  Updated October 26, 2026

Disclosure problems are the most common reason California home sales end up in a dispute after closing. The rule is simple to say and harder to follow: tell the buyer about anything you know that affects the home’s value or desirability. This guide covers the forms, the deadlines, what changed for 2026, which sales are exempt from the TDS, and how to fill everything out without creating risk.

1. Required, contractual and optional disclosures

Disclosures in a California sale come from three places:

• Required by law: the Transfer Disclosure Statement (TDS), Natural Hazard Disclosure (NHD), lead-based paint for pre-1978 homes, Megan’s Law notice, smoke and carbon-monoxide detector compliance, water-heater bracing, HOA documents and others.
• Required by the purchase contract: the standard C.A.R. purchase agreement adds items such as the Seller Property Questionnaire (SPQ) and statutory and supplemental advisories.
• Optional but smart: pre-listing inspections, a termite report, sewer-lateral video, roof certification. Once you have a report, though, you must share it (see section 5).

2. The Transfer Disclosure Statement (TDS)

The TDS (Civil Code §1102 and following) is the core form. The seller describes the home’s features and known defects in systems such as the roof, foundation, plumbing, electrical and heating, plus additions or repairs done without permits, neighborhood noise, lawsuits and HOA problems. The agents complete their own sections after a visual inspection.

Timing and the buyer’s right to cancel

Deliver the TDS as soon as practicable before the transfer. If the buyer receives it after signing the purchase contract, they can terminate within 3 days after delivery in person or 5 days after it’s mailed or sent electronically (Civil Code §1102.3). The standard contract also sets its own delivery deadline, usually 7 days after acceptance.

Common TDS mistakes

• Answering “no” when you mean “I don’t know.” Say you don’t know and explain.
• Leaving out a past repair because it’s “fixed.” Disclose the problem and the repair.
• Forgetting unpermitted work (a converted garage, a patio enclosure, an old room addition).
• Copying the last owner’s disclosures instead of answering from your own knowledge.

3. The Seller Property Questionnaire (SPQ)

The SPQ is a C.A.R. form that the standard purchase contract requires. It goes beyond the TDS with direct questions on things people tend to forget: past insurance claims, pet damage, deaths on the property, neighborhood disputes, water intrusion, mold, pests, past repairs, government notices, solar leases and more. Answer every question, and add explanations instead of a bare “yes.”

Death on the property: California doesn’t require you to disclose a death that happened more than three years before the buyer’s offer. A death within the last three years should be disclosed. Never disclose that an occupant had or died of HIV/AIDS. If a buyer asks you directly about any death, don’t misrepresent it.

4. The Natural Hazard Disclosure (NHD)

The NHD statement (Civil Code §1103) tells the buyer whether the property is in any of six state-mapped zones:

1. FEMA special flood hazard area
2. Dam or reservoir inundation area
3. Very high fire hazard severity zone
4. State-responsibility wildland fire area
5. Earthquake fault zone
6. Seismic hazard zone (liquefaction or landslide)

Most sellers order an NHD report from a third-party company through escrow, which also covers local items such as airport influence areas, Mello-Roos and 1915 Act bond assessments, and former military ordnance sites. CAL FIRE’s updated fire-hazard maps released in 2025 placed more Orange County neighborhoods in fire hazard severity zones, so don’t assume last decade’s NHD still applies.

Fire-hardening disclosure: for homes in a high or very high fire hazard severity zone built before 2010, sellers must also give the buyer a notice about fire-hardening features and any defensible-space compliance documentation.

5. Prior inspection reports and repairs

This is where good sellers get into trouble. If you know of an inspection report, it’s part of your disclosure duty no matter how old it is, and that includes reports from a cancelled escrow and reports stamped “for use only by” a prior buyer. The same applies to repairs: disclose what was wrong, who fixed it and when, even if the repair was done well.

• You don’t have to go looking for reports you don’t know about.
• If a report is in your possession, provide it. If you only know it exists, disclose that.
• Brokers keep transaction files for three years, so a report from a failed escrow will likely be found.

Disclosing a repaired leak or a past foundation report rarely kills a deal. Hiding one is how sellers end up in court.

6. What’s new for 2026

• Digitally altered listing photos (AB 723): listing ads that use digitally altered images, such as virtual staging, removing power lines or replacing a gray sky, must say so and link to or include the unaltered photos. For 2027 this extends to rental listings (AB 2025).
• Electrical inspection notice: a new statutory notice encourages buyers to have the home’s electrical system checked, which matters most for older homes.
• Gas appliance notice: buyers must be told about state and local rules that limit new gas appliances, so they can plan for future replacements.
• Recent repairs by resellers: sellers must disclose certain repairs and improvements made in the 18 months before a sale, a rule aimed mainly at flipped homes. Ask your agent whether it applies to you.

7. Other notices most sellers give

8. Sales exempt from the TDS

Some sellers don’t complete a TDS. The most common exemptions:

• Probate and court-ordered sales, including sales by executors and administrators.
• Trust sales by a trustee, with one major exception: an individual trustee of a revocable trust who lived in the home or was a former owner within the last year must still give a TDS.
• Foreclosure sales and bank-owned (REO) sales by lenders.
• Transfers between spouses, to children or relatives, and certain other family transfers.

Exempt doesn’t mean silent. Exempt sellers still owe the buyer all known material facts, and usually give an Exempt Seller Disclosure plus the NHD, lead paint, smoke and CO, and water-heater items. See our probate and trust sales page for details.

9. What happens if you don’t disclose

A buyer who discovers a concealed defect can sue for fraud, negligent misrepresentation or breach of contract, and the deadline to sue for fraud generally runs three years from discovery, not from closing. “As-is” clauses don’t protect against concealment. Cases often settle for the cost of repair plus attorney fees, which can far exceed what an honest disclosure would have cost in negotiation.

10. Seller disclosure checklist

1. Pull every inspection report, repair invoice, permit and insurance claim you have.
2. Walk the house and write down every past or current problem, even small ones.
3. Complete the TDS and SPQ yourself, from your own knowledge, with explanations.
4. Order the NHD report through escrow early.
5. Gather HOA documents if it’s a condo or planned community.
6. Check smoke and CO detectors and water-heater straps before listing.
7. Disclose any virtual staging or photo edits in your listing.
8. When unsure, disclose. Ask your agent or an attorney how to word it.

Frequently Asked Questions

What disclosures are required when selling a house in California?

Most sellers provide the Transfer Disclosure Statement (TDS), the Seller Property Questionnaire (SPQ) required by the standard contract, a Natural Hazard Disclosure (NHD), lead-paint disclosure for pre-1978 homes, smoke and carbon-monoxide detector compliance, a water-heater bracing statement, the Megan’s Law notice and HOA documents for condos and planned developments.

What is the difference between the TDS and the SPQ?

The TDS is the disclosure required by California law. The SPQ is a C.A.R. form required by the standard purchase agreement that asks more detailed questions, such as past insurance claims, deaths, neighbor disputes and repairs.

Do I have to disclose repairs I already fixed?

Yes. Disclose the original problem, the repair, who did it and when. A properly repaired issue rarely hurts a sale, but hiding it can lead to a lawsuit.

Do I have to disclose an old inspection report?

Yes, if you know about it. California requires disclosure of known reports regardless of age, including reports from a cancelled escrow or ones addressed to a prior buyer.

Can a buyer back out after receiving the disclosures?

If the TDS is delivered after the buyer signs the contract, the buyer can terminate within 3 days of in-person delivery or 5 days after it’s mailed or sent electronically. The contract may also give the buyer a separate review period.

Do probate and trust sales require a TDS?

Probate sales and most trustee sales are exempt from the TDS, but the seller still must disclose known material facts and provide other required notices. An individual trustee of a revocable trust who was a former owner or occupant within the last year must provide a TDS.

Do I have to disclose a death in the house?

California requires disclosure of a death on the property within the last three years. Deaths more than three years ago don’t have to be disclosed, but you shouldn’t misrepresent if a buyer asks directly.

This article is general information, not legal or tax advice. Laws and figures change; confirm details for your situation with a qualified California attorney or CPA. Ramez Malki is a real estate broker and mortgage professional, not an attorney or tax advisor.