When I sit down with sellers in San Jose, one of the first things I explain is this:

Disclosures are not optional — they are required.

And more importantly, they are there to protect you as much as they protect the buyer.

California has some of the most detailed disclosure requirements in the country, and understanding them upfront can help you avoid delays, renegotiations, and potential legal issues.

In this guide, I’ll walk through the most important disclosures sellers need to provide and why they matter.

For a broader overview of contracts, disclosures, and tax-related topics, start here:
👉 https://re38.com/san-jose-real-estate-contracts-disclosures-tax-guide

1️⃣ What Are Disclosures in Real Estate?

Disclosures are documents where the seller shares known information about the property.

This includes:

• Condition of the home
• Known defects
• Past repairs
• Environmental risks
• Anything that could affect the value or desirability of the property

The key word here is known.

Sellers are not expected to investigate like inspectors, but they are required to be honest about what they already know.

2️⃣ The Transfer Disclosure Statement (TDS)

One of the most important documents is the Transfer Disclosure Statement (TDS).

This form requires sellers to disclose:

• The condition of major systems
• Structural issues
• Past repairs or damage
• Known defects

It also includes a section where the real estate agent provides their observations.

I always tell sellers:
Take this seriously and be thorough.

3️⃣ Seller Property Questionnaire (SPQ)

The SPQ goes deeper than the TDS.

It typically covers:

• Property history
• Neighborhood issues
• Disputes or nuisances
• Insurance claims
• Improvements or renovations
• Anything else that could affect the buyer’s decision

This is where a lot of important details come out.

4️⃣ Natural Hazard Disclosure (NHD)

This report identifies whether the property is located in specific hazard zones.

These may include:

• Flood zones
• Fire hazard zones
• Earthquake fault zones
• Seismic hazard areas

This is usually prepared by a third-party company and is standard in most California transactions.

5️⃣ Lead-Based Paint Disclosure

If the home was built before 1978, sellers are required to provide:

• A lead-based paint disclosure
• An informational pamphlet for buyers

This is a federal requirement, not just California-specific.

6️⃣ Other Common Disclosures

Depending on the property, sellers may also need to provide:

• Death on property (within a certain timeframe)
• HOA documents (if applicable)
• Water heater and smoke detector compliance
• Solar or energy system agreements
• Permit history (if available)
• Inspection reports (if completed)

Every property is a little different, which is why I always guide sellers through this process step-by-step.

7️⃣ Why Disclosures Protect Sellers

A lot of sellers think disclosures are just for buyers.

But in reality, disclosures are one of the best ways to protect yourself as a seller.

When you disclose properly:

• You reduce the risk of future disputes
• You create transparency
• You build trust with buyers
• You protect yourself legally after closing

Most issues in real estate happen when something was not disclosed.

8️⃣ What Happens If You Don’t Disclose Something?

If a seller fails to disclose a known issue:

• The buyer may take legal action
• The seller could be financially liable
• The transaction could fall apart

This is why I always emphasize:

When in doubt, disclose.

It is always safer to provide more information than less.

9️⃣ How Disclosures Affect Negotiation

Disclosures don’t just protect you — they also shape the negotiation.

Buyers may:

• Request repairs
• Ask for credits
• Renegotiate price

This is completely normal.

If you want to understand how buyers evaluate these situations, this guide helps:
👉 https://re38.com/blog/how-do-contingencies-protect-me-real-estate-california

And if you want to understand contract risk overall:
👉 https://re38.com/blog/can-i-back-out-of-a-real-estate-contract-california

🔟 Why Disclosures Matter More in San Jose

In San Jose and Santa Clara County:

• Many homes are older
• Properties may have been remodeled multiple times
• Permit history can vary
• Buyers are very detail-oriented

This makes disclosures even more important.

The more clear and complete your disclosures are, the smoother your transaction will be.

What I Tell Sellers About Disclosures

When I work with sellers, I always emphasize a few key things:

• Be honest and thorough
• Don’t try to hide issues
• Provide as much detail as possible
• Use disclosures to build trust, not avoid it

The goal is not perfection.

The goal is transparency and protection.

Thinking About Selling Your Home in San Jose?

If you're planning to sell and want help preparing disclosures, pricing your home, and navigating the process the right way, I’m always happy to help.

📞 Zaid Hanna
408-515-1613
🌐 www.re38.com