California Property Disclosures Explained: What Silicon Valley Sellers Miss (and Pay For Later)

Selling real estate in California isn’t just about staging and pricing—it’s about paperwork, too. And one of the most overlooked—and litigated—areas is the property disclosure California requires. If you’re a seller in Silicon Valley, missing even one critical disclosure can cost you tens of thousands in legal trouble or lost deals.

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TLDR – Quick Guide

• Disclosures are required by law. California is one of the strictest states for property transparency.
  
• Common mistakes: forgetting unpermitted work, roof leaks, old repairs, or neighborhood nuisances.
  
• Risks: buyers can sue for nondisclosure up to 2 years post-sale.
  
• Solution: work with an agent who ensures your disclosures are complete and defensible.
  
• Next step: Review full disclosure checklist with Mike D’Ambrosio Real Estate Group.
  

Detailed Breakdown

1. Why California Takes Disclosures So Seriously

The state doesn’t just suggest disclosures—it mandates them. As the seller, you’re legally obligated to provide a Transfer Disclosure Statement (TDS) and Seller Property Questionnaire (SPQ), among others. These forms cover everything from water damage to neighborhood disputes to improvements made without permits.

If it’s material and affects the value or desirability of the home—you must disclose it.

2. Top Disclosures Sellers in Silicon Valley Forget

Even experienced sellers often forget to disclose issues like:

• Non-permitted renovations (garage conversions, ADUs)
  
• Past water intrusion (even if repaired)
  
• Noise issues (loud neighbors, flight paths)
  
• Plumbing/electrical quirks that aren’t up to code
  
• Foundation cracks that were “just cosmetic”
  

Failure to include these opens the door for legal claims down the road.

3. The Cost of Incomplete Disclosures

If you leave out key information, you could face:

• Lawsuits from buyers who feel misled
  
• Mediation/arbitration costs even if you settle
  
• Price reductions or contract cancellations during escrow
  

Buyers have up to two years to come after you for non-disclosure. That’s a long time to be looking over your shoulder after you thought the deal was done.

4. What California Requires (Minimum Checklist)

Here’s what sellers typically must complete:

• TDS – Transfer Disclosure Statement
  
• SPQ – Seller Property Questionnaire
  
• Lead-Based Paint Disclosure (for homes built before 1978)
  
• Natural Hazard Disclosure
  
• Mello-Roos or Special Tax Notices
  
• HOA Documentation (if applicable)
  

These documents should be 100% truthful, dated, and signed.

5. Best Practices to Avoid Pitfalls

• Disclose everything you know—it’s safer to over-disclose than to hide issues.
  
• Be honest about defects—even if fixed. Buyers care more about surprises than flaws.
  
• Don’t guess. If you’re unsure, say so in writing (“unknown”) rather than speculating.
  
• Work with a qualified agent who reviews every line item with you.
  
• Include contractor invoices or photos of repaired issues if available. Transparency wins trust.
  

Key Takeaways

• California’s property disclosure laws are strict for a reason: transparency protects both sides.
  
• Incomplete disclosures can cost you—financially and legally.
  
• Don’t guess, hide, or skip.
  
• Hire an experienced listing agent to guide your disclosure process thoroughly.
  
• Visit mikedsells.com to get a full seller checklist and avoid common pitfalls.
  

When it comes to property disclosure California, the best defense is total transparency. Protect your sale—and your peace of mind—by getting it right the first time.

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