Home Seller Disclosures

Providing the proper home seller disclosures to the prospective buyer must be handled in a timely manner. Derailing the sale and even litigation down the road can be the results of failure to disclose specific environmental and geographical hazards as well as certain materials present in the home. Here are some of the required home seller disclosures:

Seller Property Disclosure
Transfer Disclosure Statement
Earthquake Disclosure and Receipts for Booklets
Lead Paint

If you own a home built prior to 1978, you have the following obligations:

• Provide the potential buyer with the HUD pamphlet: “Protect Your Family From Lead in Your Home”

• Give the potential buyer a 10-day opportunity to test for lead

Natural Hazards

You are obligated by California law to provide via a “Natural Hazard Disclosure Statement” (NHD) evidence of:

• Flood hazard zones designated by the Federal Emergency Management Agency (FEMA)
• An area prone to flooding subsequent to a dam failure (also known as an inundation area)
• A high fire hazard zone
• A wildland fire area (also known as a “state fire responsibility area”)
• Earthquake fault zones
• Seismic hazard zones

Residential properties
Government booklets, handouts, and safety guides can be found at:
Home Energy Rating Guide
California Homeowner´s Guide to Earthquake Safety
Department of Health Services Residential Environmental Hazards
Lead in Your Home
Department of Health Services Mold FAQ
Mello-Roos Tax Districts

An area known as a “Mello-Roos Community Facilities District” is formed by a local government, district, or agency in order to finance public services and facilities. They can include police and fire departments, ambulance and paramedic services, parks, schools, libraries, museums and cultural facilities.
If your home is in a relatively newly developed area, for example, it might be within aMello-Roos tax district. If so, you are required to provide the buyer a “Notice of Special Tax.”

Condominiums etc.
Is your home is a condominium, townhome or in another type of planned unit development (PUD)? If so, there will be additional items you’ll need to inform the prospective buyer about. A homeowner’s association, common areas such as recreational areas, clubhouses and so on are just a few.
Since the buyer may be required pay monthly dues or fees known as“regular assessments” to cover a portion of costs to maintain common areas, this information is vital. Remember to inform your potential buyer about less frequent special assessments for things like roof repair or replacement, plumbing repairs, and so on as determined by the homeowner’s association (HOA.)

Regulations and limitations on things such as pets, age of residents, and architectural design or enhancements might also be mandated. The following documents, if they exist, must be provided to the buyer:

• Declaration of Restrictions: Commonly known as “CC&Rs”, or Conditions, Covenants and Restrictions

• Articles of Incorporation or Articles of Association Bylaws

• Current financial information and related statements, including HOA reserves, estimated revenue and expenses, operating budget, regular and special assessments, and projected life expectancy of major components such as roofs, plumbing, etc.

• Statement outlining the HOA’s policies and procedures with regard to enforcement of lien rights or other legal remedies for default in payment of its assessments

• Summary of the HOA’s insurance policies, including property, general liability, and earthquake and flood insurance

• Statement describing any HOA restrictions on the basis of age, such as authorized senior citizen housing

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