Buying property in California is often one of the most significant financial decisions you’ll make. You expect that the seller will be upfront about the condition of the home or building, but sometimes key details are left out. When a seller hides or fails to share information they are legally required to disclose, it’s called a non-disclosure.
Non-disclosures can lead to costly surprises after closing, from hidden water damage to unpermitted renovations. This guide explains California’s disclosure laws, what counts as a non-disclosure, and how buyers can respond if they believe essential information was withheld.
Seller Disclosure Laws in California
California has some of the strongest disclosure requirements in the country. Under California Civil Code § 1102, most residential sellers are required to complete a Transfer Disclosure Statement (TDS). This form requires sellers to disclose any known material facts that affect the property’s value, safety, or desirability.
Disclosures often include:
- Structural issues, such as roof leaks or foundation cracks.
- Water damage, mold, or pest infestations.
- Unpermitted work or code violations.
- Legal disputes affecting the property.
- Noise problems or neighborhood nuisances.
Even when property is sold “as-is,” the seller is still obligated to disclose known defects. Failing to do so may give the buyer grounds to pursue legal remedies.
What Counts as a Non-Disclosure?
A non-disclosure occurs when a seller fails to reveal a material fact that could influence a buyer’s decision to purchase or the price they are willing to pay. Common examples include:
- Concealed damage, such as prior flooding, fire, or earthquake repairs that weren’t disclosed.
- Unpermitted renovations, such as a converted garage or room addition.
- Boundary disputes or easements that affect how the property can be used.
- Pest or mold infestations that were painted over or hidden during showings.
- Ongoing neighborhood disputes, such as conflicts over shared driveways or noise complaints.
If a reasonable buyer would have wanted to know about the issue before closing, it likely qualifies as a material fact.
Signs You May Be Facing a Non-Disclosure
Not every defect will be evident at closing. Signs of a potential non-disclosure often appear weeks or months later:
- Contractors uncover hidden water damage or structural issues.
- An inspector finds evidence of unpermitted work.
- A title search reveals undisclosed liens or easements.
- Neighbors mention prior problems that were never disclosed.
When these red flags appear, it’s important to act quickly to preserve your rights.
How to Respond to a Non-Disclosure in California
If you suspect a seller failed to disclose required information, here are the steps you can take:
- Gather documentation – Collect inspection reports, contracts, emails, and photos.
- Contact the seller – Sometimes issues can be resolved informally through reimbursement or repair agreements.
- Review your purchase documents – Real estate contracts may include provisions for mediation or arbitration before litigation.
- Consider insurance claims – Your agent’s Errors & Omissions insurance may cover certain disputes.
- File a lawsuit if necessary – If other options fail, you may bring a claim for damages or rescission in a California court.
Remedies Available to Buyers
California law gives buyers several remedies if they prove non-disclosure:
- Monetary damages to cover repair costs or reduced property value.
- Rescission, which cancels the sale and restores both parties to their pre-sale positions.
- Attorney’s fees, in some cases, if the purchase agreement provides for fee recovery.
The proper remedy depends on the nature of the defect, the timing of discovery, and the buyer’s goals.
Why Legal Guidance Matters in Non-Disclosure Cases
Non-disclosure claims involve strict legal standards and the burden of proof falls on the buyer. Sellers often defend themselves by claiming they didn’t know about the defect, or by arguing it wasn’t material.
An attorney can:
- Review disclosure documents and contracts for compliance.
- Investigate and uncover evidence of concealed defects.
- Negotiate with the seller to reach a fair resolution.
- Represent you in mediation, arbitration, or court if necessary.
At BoyesLegal APC, we help California buyers hold sellers accountable when critical information is withheld. We understand the impact of non-disclosures on families and investors, and we are committed to pursuing fair outcomes.
California Real Estate Dispute Attorneys
When sellers fail to disclose property defects, buyers are left with unexpected costs and legal headaches. California law provides strong protections; however, you must take action promptly and build a strong case.
If you believe a seller failed to disclose essential facts in your California real estate purchase, turn to BoyesLega. Contact us today to explore your options and protect your investment.