ALLIANCE BAY REALTY

SELLER DISCLOSURE RISK SHEET

California Material Facts – What You Must Disclose

In California, sellers are legally required to disclose all known material facts that may affect the value or desirability of the property.

If you know about it — disclose it.
If it was repaired — disclose it.
If it happened once — disclose it.

Failure to disclose can result in:

  • Lawsuits
  • Rescission of sale
  • Attorney fees
  • Insurance complications
  • Personal liability

🚨 HIGH-RISK DISCLOSURE CATEGORIES

1️⃣ Water Intrusion (Most Common Lawsuits)

  • Roof leaks (past or present)
  • Plumbing leaks
  • Slab leaks
  • Flooding
  • Drainage problems
  • Mold (past or present)
  • Water damage insurance claims
  • Window or balcony leaks

👉 If it ever leaked, disclose it.

2️⃣ Structural / Foundation Issues

  • Cracks in foundation
  • Settlement or soil movement
  • Retaining wall failure
  • Sagging floors
  • Seismic retrofitting issues
  • Structural repairs

3️⃣ Unpermitted or Non-Finaled Work

  • Room additions
  • Garage conversions
  • ADUs
  • Decks or patios
  • Electrical/plumbing without permits
  • Work not signed off by city

Even if completed “years ago,” it must be disclosed.

4️⃣ Insurance & Prior Damage

  • Fire damage
  • Water damage claims
  • Insurance non-renewal
  • Difficulty obtaining insurance
  • Earthquake claims
  • Past major repairs

5️⃣ Pest & Environmental Issues

  • Termites or dry rot
  • Rodents or infestations
  • Asbestos
  • Lead-based paint (pre-1978 homes)
  • Radon or contamination
  • Underground storage tanks

6️⃣ Legal / Title / Disputes

  • Neighbor disputes
  • Boundary issues
  • Easements or encroachments
  • HOA litigation
  • Special assessments
  • City violations
  • Liens or claims
  • Shared driveway conflicts

7️⃣ Death on Property

  • Any death within the past 3 years
  • Any death if directly asked

8️⃣ Neighborhood Conditions (If Known)

  • Ongoing noise issues
  • Nuisances
  • Odors
  • Criminal activity nearby
  • Planned major developments

⚖️ THE CALIFORNIA STANDARD

You must disclose:

“All known facts materially affecting the value or desirability of the property.”

If a reasonable buyer would want to know — disclose it.

🧠 IMPORTANT REMINDERS

✔ “It was fixed” does NOT eliminate disclosure
✔ “It was a long time ago” does NOT eliminate disclosure
✔ “It wasn’t a big deal” does NOT eliminate disclosure
✔ Verbal disclosure is NOT enough — it must be in writing

When in doubt — disclose.

🛡️ Alliance Bay Realty Risk Protection Policy

Our brokerage policy is simple:

Over-disclose, don’t under-disclose.

Full transparency:

  • Protects you from lawsuits
  • Protects the transaction
  • Protects the buyer
  • Protects your net proceeds
  • Protects our brokerage